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IndiGo, rivals jostle for Jet's global flying rights: Report

The government had decided that Air India would get half of Jet's slots on high-demand routes and the rest would be given to carriers ranked on the basis of flight frequency.

May 21, 2019 / 02:11 PM IST
The deadline for Jet Airways corporate insolvency resolution process is October 21

The deadline for Jet Airways corporate insolvency resolution process is October 21

 
 
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Differences have cropped up between IndiGo and its main domestic rivals over the method of distribution of grounded Jet Airways' foreign flying rights among them by the Aviation ministry, sources told The Economic Times.

The government had decided that Air India would get half of Jet's slots on high-demand routes. The rest would be given to carriers ranked on the basis of domestic flights, which is measured in available seat kilometres (ASKs). This strategy is currently benefitting IndiGo as it is the market leader.

IndiGo's main rivals - SpiceJet, Vistara and GoAir - have voiced their objection to the aviation secretary Pradeep Singh Kharola, saying that this move would create a monopoly, sources said.

The rights are being given to airlines as per the Aeronautical Information Circular (AIC). "While the decision on the award of foreign flying rights of Jet Airways temporarily to other carriers has been taken, the opposition by airlines to the AIC is being discussed," a source from the aviation ministry said.

State-run Air India has been allotted around 5,700 weekly seats on the India-Dubai route, over 5,000 on the India-Qatar route and 4,600 additional seats to and from London. This is about 50 percent of Jet's quota on routes, a source said.

"This is temporary allocation. The objective is to immediately provide flights for passengers who are paying high fares, mostly to foreign airlines. This objective is fulfilled by those airlines that can provide immediate capacity and who have slots at both origin and destination," a SpiceJet spokesperson said.

"The rule referred to was made in 2005 with the objective of protecting incumbent carriers at the time, primarily Air India. The rule is not relevant to the temporary allocation that is being done at this time. The ministry has already ignored this rule by allotting some of Jet's traffic rights to Air India on a temporary basis," the person added, as per the report.

Most industry members believe IndiGo will get the slots as it has the most market share. Some think it makes sense as this move is only temporary and it will help to minimise the inconvenience to the public.

Moneycontrol News
first published: May 21, 2019 02:10 pm

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