NEW DELHI: Air India, which was recently acquired by the Tata Group, has lost its preferential status when it comes to operating international flights from India, as per the latest circular issued by the regulator The Directorate General of Civil Aviation (DGCA).
The fresh DGCA circular, which was issued on April 19, has removed the clause that said, “due consideration shall be given to operational plans submitted by Air India before allocation of the traffic rights to other eligible applicants.”
It rather says, “The central government may at its discretion grant or deny allocation of traffic rights to any air transport undertaking having regard to its preparedness to undertake such operations, viability of the operations on a particular route, overall interests of the civil aviation sector etc.,” the fresh circular read.
For airlines in India to operate international flights, India has to negotiate with the other country and sign a bilateral air services agreement.
This agreement lays down how many flights or seats per week can be allowed between the two nations. Once the agreement is sealed, the two countries then allocate these rights to their respective airlines. In the past, Air India was given preference since it was a state-owned airline. The new circular also notes that traffic rights allocated to an airline for a particular schedule period has to be fully utilised by it during the mentioned period.
Flight slot
For airlines in India to operate international flights, India has to negotiate with the other country and sign a bilateral air services agreement