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`Open Sky` policy to hit AI, IA earnings
New Delhi, Oct 10: The announcement of `Open Sky` policy for designated airlines of ten Asean nations to fly unhindered into Indian cities is likely to hit the earnings of Air India and Indian Airlines, official sources said today.
New Delhi, Oct 10: The announcement of 'Open Sky'
policy for designated airlines of ten Asean nations to fly
unhindered into Indian cities is likely to hit the earnings of
Air India and Indian Airlines, official sources said today.
However, in order to prevent any adverse impact on the
revenue of Air India earned through bilateral air traffic
rights, government has allowed the airlines of these southeast
Asian nations to operate freely to certain places like Goa,
Kochi, Amritsar, Gaya and Khajuraho, the sources said.
These foreign carriers would however not be allowed to
use the 'Open Sky' policy for metro cities, the sources said.
They replied in the affirmative when asked whether these
airlines would be allowed to take the benefit of the policy
when it is announced by the government for all other carriers
as has been the past practice during the peak winter season.
While only three Asean nations operated their flights to India, both Air India and Indian Airlines would face heightened competition if these carriers were allowed to operate to the comparatively smaller but important tourist destinations, industry sources said.
Air India earns revenue through the bilaterals if it does not operate to the countries with which the agreements have been signed by the government. The designated carriers of these nations have to enter into a commercial arrangement with Air India for carrying out their India operations. Bureau Report
While only three Asean nations operated their flights to India, both Air India and Indian Airlines would face heightened competition if these carriers were allowed to operate to the comparatively smaller but important tourist destinations, industry sources said.
Air India earns revenue through the bilaterals if it does not operate to the countries with which the agreements have been signed by the government. The designated carriers of these nations have to enter into a commercial arrangement with Air India for carrying out their India operations. Bureau Report