Private airlines will have access to the gulf skies from next year

PRIVATE airlines may be allowed to operate flights to the lucrative Gulf sector in January 2008. The sector, which has been reserved for stateowned Air-India and Indian till now, is likely to be opened up for private competition. The sector — including United Arab Emirates (UAE), Qatar, Oman, Bahrain, Kuwait and Saudi Arabia — is an important source of revenue for the two national carriers.
The move is significant for Jet Airways which is said to be keen on starting operations to the Gulf. During a review of the civil aviation policy draft last year, the civil aviation ministry has proposed extension of the public sector monopoly over Gulf routes till 2010 — giving Indian and Air India two more years to benefit from restricted competition in this sector. However, officials of the ministry have now proposed— in the draft of the policy which was reviewed by civil aviation minister Praful Patel — that private carriers should be allowed to operate Gulf flights next year.
The move would enable only Jet Airways and Air Sahara to fly to Gulf nations abroad as they meet the criteria of having completed five years in the domestic market and fleet strength of 20 to fly internationally. The policy is under review. Private players can be allowed to fly to Gulf early next year, an official said.
The change in policy follows the merger of Indian and Air-India which is underway now. The official said the move is part of government’s initiative to further liberalise the sector and prepare the state-owned airlines for competition. The ministry believes by next year the merged entity of Air India and Indian would be strong enough to compete with private airlines.
For private airlines, the move would open up a lucrative avenue while passengers may hope for lower fares. Other carriers like Air Deccan, Kingfisher and SpiceJet are also keen on this sector.

courtesy:economictimes