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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