Two More Airlines To Test Indian Skies

Tuesday, 22nd July 2014 at 04:42am

India will see more local airlines applying for a license to operate to get a share in the 43 million-strong market.

The country's Directorate General of Civil Aviation (DGCA) received a total of six applications for AOP from different groups, but has granted four of them so far which include Ligare Aviation Limited, Quickjet Cargo Airlines, LEPL Projects Ltd. and, of course, AirAsia India.

Pending applications include that of another Tata Group joint venture, Tata-SIA Airlines, with Singapore Airlines as well as Air Pegasus.

The two pending applications still need the final decision from DGCA after they obtained their no objection certificate (NOC) from the Civil Aviation Ministry.

Malaysia-based AirAsia Bhd. started its application process early last year when it signed a deal with Tata & Sons to set up a local subsidiary of its low-cost empire, following the amendment of the country's FDI law in September 2012. The newly-amended law allows foreign airline to own up to 49% stake in a local carrier from the previous cap of 24% prior to the amendment.

Tata & Sons' other joint venture with a foreign airline, Tata-SIA Airlines, is now awaiting its air operator's permit (AOP) from DGCA. The Directorate recently rejected the petition filed by the Federation of Indian Airlines (FIA) who opposed the venture, citing violations in the newly-amended FDI law. It previously filed similar lawsuit against AirAsia India but was also rejected by the Directorate, stating that it holds the right to interpret its own law.

Federation of Indian Airlines (FIA) is a group of existing Indian carriers formed primarily to oppose the entry of new commercial airlines that would be a potential threat to their operations.

The AOP that AirAsia India obtained from DGCA will be subject to court orders at the Delhi High Court in a case filed by FIA.

In addition to the two pending applications of Tata-SIA Airlines and Air Pegasus, two other upcoming airlines, Air Carnival and Zav Airways, have just recently been granted their NOC.

But before them, four other applicants have already received their NOC from the Civil Aviation Ministry, namely, AirOne Aviation, Premier Air, Turbo Megha, and Zexus Air Ltd.

The government hopes that the granting of NOCs and AOPs to new operators would fast-track its intention to fly to destinations not currently served by existing operators.

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