Government may block small carriers on metro routes
Civil aviation minister Ashok Gajapathy Raju Pusapati has said that smaller carriers will not be encouraged to fly in the metro routes.
The move is aimed at preventing oversupply of capacity at the metro routes. DGCA figures showed airlines have consistently added more capacity than there is demand for in the last few months. Executives at Air Costa weren't immediately available for comment.
The airline flies to Bengaluru, Chennai, Hyderabad apart from smaller airports such as Vijaywada and Madurai. The move is, however, unlikely to affect airlines such as Tata-SIA, the joint venture between Tata Sons and Singapore Airlines, a source said. Tata-SIA, planned as a premium carrier, will use Delhi as its hub and will fly to Mumbai, Goa, Patna, Chandigarh, Srinagar, Hyderabad and Bengaluru. The airline is waiting for its air operators' permit.
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