Unused overseas flying rights of Indian carriers likely to be reallocated

The reallocation of unused overseas flying rights could cause a decrease in the quota of flights Indian carriers have

The government will allot international flying rights to Indian carriers for the 2023 winter schedule, which begins from the end of October, based on their capacity utilisation in the gone-by winter season, reports have said.

The reallocation could lead to a decrease in the quota of flights for some of the airlines, as the government puts pressure on them to increase the flight frequency and keep ticket prices in check, The Economic Times has reported.

The government told the carriers about the reallocation plan in the second week of March but the move was facing resistance from major Indian players opposed to any cut in their flights, the report said.

The Federation of Indian Airlines (FIA), the apex industry body that counts IndiGo, Air India, SpiceJet and Go wrote First, wrote to the civil aviation ministry requesting another year to utilise their traffic rights.

Moneycontrol couldn't verify the report independently.

“International flights were only allowed to resume in March 2022, but many countries had restrictions on flights from India. Even now the industry is grappling with issues like visa delays and a massive supply chain constraint which have forced airlines to delay aircraft inductions,” an executive of an airline, which is part of FIA, told the business daily.

Unused traffic rights are reverted to the pool and reallocated and the ministry was keen to implement the rule strictly, a government official told The Economic Times.

The official also disclosed that Akasa Air had requested  reallocation of unused rights to them.

Akasa Air has 20 aircraft and intends to start international flights by the end of this year,  CEO Vinay Dube had told Moneycontrol.

Talking about the government's push for creating hub airports and the need to keep consumer interests in mind through competitive ticket prices, the government official said the airlines operated one full schedule in winter and hence it was time to check the utilisation.