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Privatised Air India loses preferential status for international flights

Link [2022-04-26 10:13:42]

New Delhi, April 25

The Director General of Civil Aviation (DGCA), in a circular, has announced that Tata Group-owned Air India has lost its preferential access to bilateral rights for operating flights to another country.

Bilateral rights

When Air India was owned by the government, it had preferential access to bilateral rights, which were granted under air services agreements signed between two countries For the airlines of a particular country to operate international flights to another country, the two sides have to negotiate and sign a "bilateral air services agreement", which decides how many flights (or seats) per week can be allowed to fly from one country to the other

When Air India was owned by the government, it had preferential access to bilateral rights, which were granted under air services agreements signed between two countries. But now the Tata Group controls Air India after successfully winning the bid for the airline on October 8 last year.

Clause 3.6 of the previous DGCA circular stated, "Due consideration shall be given to the operational plans submitted by Air India Ltd before allocation of the traffic rights to the other eligible applicants." The fresh DGCA circular, which was issued on April 19, removed the clause.

"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 the airlines of a particular country to operate international flights to another country, the two sides have to negotiate and sign a "bilateral air services agreement", which decides how many flights (or seats) per week can be allowed to fly from one country to the other.

Once such an agreement is signed, each country is free to allocate the bilateral rights to its respective airlines. But even after such flying rights are allocated to an airline, it must have slots at both the airports in order to start flight operations and a slot is a date and time at which an airline's aircraft is permitted to depart or arrive at an airport. The slots are allocated by a panel comprising civil aviation ministry and DGCA officials, airport operators and airlines, among others.