No-fly zone: It's war for overseas flights

NEW DELHI: The new civil aviation policy appears to have generated intense interest across the political spectrum, judging by the diversity of opinion on the matter. Industry players are busy lobbying with political parties as well as ministers, who are part of the group of ministers (GoM) that will decide the contours of the new policy. The bone of contention is when exactly a private sector airline can start flying outside India.

The ministers for law and railways (part of the GoM) are learnt to be supporting the continuance of the existing norms, which stipulate that private airlines can fly abroad only after five years on the domestic circuit. On the other hand, civil aviation minister Praful Patel and the finance ministry are in favour of a liberalised regime.

The existing norms are backed by Jet Airways, India’s leading airline, which does not want a change, while new private airlines such as Kingfisher want the five-year norm to be scrapped. Early indications suggest that the new policy might not have a smooth passage because of these differences in opinion.

The latest to oppose any relaxation in the norms is the Communist Party of India (CPI). In a recent letter to Prime Minister Manmohan Singh, CPI general secretary AB Bardhan urged him to examine the matter and discourage any move to alter existing rules just to suit the convenience of a particular airline.

“Outside the country, airlines are carriers of our flag and prestige and we can not allow any dilution or compromise on that score. We have learnt that there are moves to reduce the qualifying period from five to three or so. It appears that this move is with a view to suit a particular airline. In my view, salutary and well-established rules should not be changed merely to accommodate a particular operator,” Mr Bardhan said in the letter.

The GoM headed by external affairs minister Pranab Mukherjee is expected to meet in the first week of September to review the proposed national civil aviation policy. Civil aviation minister Praful Patel last week told ET that he is willing to allow more airlines to start overseas operation on case-to-case basis.

The Indian civil aviation sector has been opened up in phases. Initially, private airlines were allowed to fly to SAARC and South-East Asian countries in 2003. In 2004 they were allowed to fly to all parts of the world except for the Gulf, which remains a monopoly of the public sector airlines Air India and Indian Airlines (now Air India post-merger). The five-year rule was introduced when airlines were allowed to fly outside India. The Gulf monopoly may end in 2008, making the stakes even higher.