By IANS
New Delhi : In a bid to improve connectivity between the metros and smaller cities, as also between these cities, the Indian government said Thursday it would encourage start-ups of regional airlines by introducing a separate category of permits for them.
“There is a need to expand air services to the Tier II and Tier III cities to meet the unfulfilled demand for this which the existing operators are unable to cater to for various reasons,” Civil Aviation Minister Praful Patel said while unveiling the new guidelines for starting regional airlines.
“It was felt that a separate category of airlines, mainly with smaller aircraft, might be encouraged to fill this gap and also contribute to the overall growth in the sector,” Patel maintained.
The regional airlines will not be permitted to fly between the metros in the northern, western and eastern parts of the country but can do so in the south.
Thus, the new regional airlines will be permitted to fly between the metros of Chennai, Bangalore and Hyderabad in the southern region and to smaller towns elsewhere in the country.
In the case of the northern, western and eastern parts of the country, the regional airlines will not be permitted to operate between New Delhi, Mumbai and Kolkata but can offer connections from these metros to any other part of the country.
Theoretically, what this means is that a regional airline can operate, given it has the right type of aircraft, flights between New Delhi and, say, Guwahati, but not between the capital and Kolkata.
Asked if existing airlines would be permitted to operate on regional routes, Patel said: “We will examine the proposal and if there is a serious business plan, we could consider it, but attempts to take advantage of the new permit to operate surrogate airlines would not be allowed.”
The new regional airlines would have to acquire at least three aircraft in the first year of operations, with the number going up to a minimum of five by the end of the second year.
The paid up capital of the new companies would be Rs.300 million in the first year for airlines operating aircraft with a maximum take-off weight of 40,000 kg. This would have to go up to Rs.500 million by the end of the second year.
For airlines operating aircraft with a take-off weight of less than 40,000 kg, the paid up capital would have to be Rs.120 million in the first year, rising to Rs.200 million by the end of the second year, the new guidelines state.
According to Patel, the guidelines were meant to ensure that “regional airlines are a notch above the others”.
The minister replied in the affirmative when asked if the regional airlines would be permitted inter-line linkups with other airlines.
“If they are to be successful, they should have inter-line linkups,” he contended.