New Delhi, Sep 22 (PTI) As the government on Tuesday signed agreements for the next phase of the regional connectivity programme UDAN, Civil Aviation Minister K Rammohan Naidu said India aims to become a global aviation hub while ensuring the safety of passengers and reasonable airfares.
The government will assess the “pros and cons” of the proposal for airport operators owning stakes in airlines and decide on a balanced approach, Naidu said.
To make full use of today’s strong travel demand, India’s aviation sector needs at least five airlines operating with 100 aircraft each, he said, adding the ministry actively supports the ambition given the country’s size and growing airport network.
“So, it is important for us to plan not only for the aspirations today, but for Viksit Bharat 2047 also,” he told reporters on the sidelines of signing pacts for the next phase of UDAN (Ude Desh ka Aam Nagrik), launched in October 2016.
To a query on the Adani Group seeking to own a stake in an airline, Naidu said one thing from the government is clear: the country needs more airlines.
“Now, airports and airlines operating together need some deliberation on that. We are going to see the pros and the cons of it,” he said.
The first idea, he said, is to provide the passenger with more airlines as an option.
And if there is someone who is interested in doing it, then the government supports the idea, the minister said, adding that there is no clause or rule that stops airport operators from having airlines other than the OMDA (Operation, Management and Development Agreement).
“So, if let us say DIAL, which is still a private operator, if it wants to operate an airline, then there is no rule as such that is stopping them. So, that is why we have to see; we have to take a balanced approach,” he said.
He also said no decision has been made yet.
Under the Operation, Management and Development Agreement (OMDA) for major airports operated through public-private partnerships (PPPs), there are restrictions on airport operators having ownership in airlines.
SPICEJET’S WOES
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The Directorate General of Civil Aviation is carrying out operational and financial scrutiny of budget carrier SpiceJet to ensure that passengers do not face any inconvenience, Naidu said.
As SpiceJet grapples with multiple headwinds leading to frequent flight delays and operational issues, Naidu also made it clear that the ministry has limitations in intervening in the affairs of a private carrier.
In July, the airline’s domestic market share dropped to 1.6 per cent from 1.9 per cent in June, as per the latest official data.
“The immediate activity in the ministry regarding SpiceJet is that we have operational and, to a certain extent, financial scrutiny also being done by the ministry through the DGCA because we don’t want any lapse in safety,” Naidu said.
The ministry was continuously engaging with the airline, but there were limits to how far the government could intervene in a privately run airline.
Naidu further said the government has extended the ECLGS (Emergency Credit Line Guarantee Scheme) to help airlines that might face problems due to the West Asia crisis, and added that SpiceJet has been given Rs 150 crore under the scheme.
“Our major priority right now is to ensure the passengers shouldn’t face any inconvenience, the safety shouldn’t be compromised at any cost in terms of operations, and then smooth operations are sustained within the airline,” he said.
KEEPING AIRFARES REASONABLE
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The government will not cap airfares for the upcoming festival season, but will advise airlines to keep the prices reasonable, Naidu said, even as he mentioned that operating costs for aviation companies have risen due to higher fuel costs.
In the past too, the government has handled the price situation in terms of festivals or important events.
“We engage with the airlines continuously; we also have regular meetings with them. And we definitely point it to them that during this festive season, you have to ensure that the fair prices are kept at a reasonable level so that the people who want to travel, especially in these important times, get to see the benefit,” the minister said in response to a question about whether the government would impose a cap on airfares during the forthcoming festival season.
HUB-AND-SPOKE MODEL
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The security ecosystems for the hub-and-spoke model flights have been thoroughly revised and strengthened to prevent any lapses in the future, Naidu said.
The ministry has issued a show-cause notice to Air India, and the airline staff concerned have been suspended, he said, regarding the security lapse at the Delhi airport earlier this month that resulted in three Italian passengers taking a Lufthansa flight to Munich without completing the immigration process.
The passengers had flown on an Air India flight from Amritsar to the national capital enroute to Munich under the hub-and-spoke model.
“…One thing is that we want the security to be intact. There shouldn’t be any compromise in terms of security detail in our airport operations. And the second is, we also want to facilitate a lot of convenience for our international passengers. That is where the idea of hub-and-spoke operations comes in,” he said.
Under this first-of-its-kind framework, international passengers complete check-in, immigration and customs formalities at the originating spoke airport, which is itself an international airport, before commencing their journey to global destinations.
After arriving at the designated hub airport, passengers can proceed directly to their onward international flight without repeating immigration or customs procedures. PTI NKD RAM VHI VHI BAL
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(PTI News)
