Gulf News

Dear Sir,

Please read this article, pressure the authorities to permit domestic
airlines to operate in the gulf sector. The competision is the only
solution to reduce air fare in this sector.

K V Shamsudheen

Business | Aviation

Published: 31/12/2004, 07:53 (UAE)

NRIs upset by bias in new aviation policy

By Stanley Carvalho, Staff Reporter

Abu Dhabi: India should reverse a recent policy decision and allow
low-cost private airlines to fly between the subcontinent and the
Gulf, sources said.

"We have been waiting for the announcement of a policy change, with an
expectation of reduction in the cost of flying between India and the
Gulf. But the newly announced policy [barring low-cost carriers from
flying to the Gulf] disappointed millions of people," said K.V.
Shamsudheen, chairman of the Pravasi Bandhu Welfare Trust, a
charitable trust for expatriate Indians.

An Indian cabinet decision on Wednesday permits private Indian
carriers to fly overseas, but prohibits them from flying to the Gulf,
where millions of Indians work.

"We request the aviation ministry to [liberalise air travel between
the Gulf and India] and allow airlines such as Air Arabia to fly to
India," Shamsudheen said in a statement.

While welcoming the government's decision to allow domestic private
airlines to fly overseas, he said restricting the private airlines'
chances to fly to the Gulf shields India's state-owned airlines, Air
India and Indian Airlines, from having to compete for customers and
provides them with a monopoly in the Gulf. "These two airlines are
surviving only because [they have a] monopoly [on travel to the Gulf
and can charge] exorbitant fares," he said.

Price fixing is a factor on routes between India and the Gulf, said
Indian-born George Ambookan, marketing manager for Omeir Travel
Agency.

The Indian government's move on Wednesday may be intended perhaps to
give Air India time to become competitive and eventually allow private
airlines on certain key routes, he said.

"Air India is currently not utilising [its] complete traffic rights in
several countries due to a lack of aircraft and other factors.

"Thus, it is letting private airlines fly to these places. But the
Gulf is a cash cow for Air India, and it may want to open the Gulf up
to private airlines [only] in phases," he said.

"The decision to disallow private airlines to fly to the Gulf is
[unfair]. India will not allow Air Arabia to enter India. Airfares are
high and this hurts the low-income workers the most," said an Indian
banker in Abu Dhabi.

"It is high time some rationality is brought to the matter of airfares
for flights between India and the Gulf," he said.


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