Monday, August 13, 2007

Regional airlines to boost local connectivity

Hello everybody,

This is C.S.Janardhan . Here is a very interesting policy Undertaken by the government to boost the local connectivity through airways and bring up better ways of private sector participation in airlines in the nation. The government on Thursday introduced a new category of schedule carriers — regional airlines.

These airlines would primarily provide local connectivity in the north, west, south and east/northeast by using one metro in their regions as the base for flying to other smaller towns either in the region or anywhere in India.

For starting a regional airline, the company would have to acquire at least three aircraft within a year and at the end of two years, it would be required to operate with a minimum of five planes.

"I see 200 aircraft operating with regional airlines in next five years. Currently about 80 places get flights regularly and another 100 more places can be added on this list," the minister said.

Now airlines can begin as regional carriers and if they increase their fleet size to three and five aircraft in one and two years, respectively, they can aspire to become national carriers on their performance. Moreover, Civil Aviation Minister Praful Patel said this will lead to states reviving unused airstrips or opening new airports in private participation to link them to the country.

Following are few links for more details related to the article….

http://www.hindu.com/2007/08/11/stories/2007081156661600.htm

http://timesofindia.indiatimes.com/India_Business/Now_regional_airlines_to_boost_local_connectivity/articleshow/2269573.cms

http://www.indiaprwire.com/businessnews/20070809/23830.htm

3 comments:

Srikanth-LOLA-Viswanathan said...

We are talking of increasing the aircrafts without talking about improvements to the airports to accommodate the additional traffic? Is it a good idea?

janardhan said...

this was a very serious topic raised infront of the minister of civil aviation....there are lots of small airstrips developed across india for private aircrafts etc.....even a small town like rourkela has an airstrip.....the scheme encourages only small size 80 seater planes....so he funda lies in the development of these airstrips to make small ports so that many towns hav an acess to air traffic......once the port finds growth in economy (the scope of this project being 5 years from now)the respective airports can be developed by PPP as well...

Mash said...

Janardhan and Srikanth - your discussions are very relevant. To some extent, development has to take place in parallel across several aspects - theoretically it might be a good idea to expand metro capacity first and then introduce regional airlines, but in reality expansion of regional airlines could even drive the growth/expansion of metro airports.