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Home > Business > Business Headline > Report

A-I, Indian Airlines route revamp on hold

Rumi Dutta in Mumbai | March 12, 2003 13:41 IST

The route rationalisation programme planned between the two national carriers Air-India and Indian Airlines by the civil aviation ministry has been put on the backburner.

This is an outcome of a major difference between the two carriers, albeit behind the curtains, on the issue of common routes.

Sources close to the discussions said, "At present, the route rationalisation issue has been put on hold."

The aviation ministry had decided to rationalise the routes of the two carriers as both were operating on several common routes thereby competing with each other and eating into their market shares.

Sources said IA, the domestic carrier, is of the opinion that it should be allowed to concentrate on the Gulf sector, while A-I should focus on the long-haul flights. This is because A-I has larger aircraft, which can fly longer distances.

IA has also said that A-I does not operate around 50 per cent of its existing bilaterals with several countries, sources said.

However, A-I is not ready to curtail operations on the lucrative Gulf sector under any circumstances.

As a signal of things to come, A-I on Tuesday announced increased frequency to prime Gulf routes such as Dubai, Muscat, Jeddah and Riyadh.

A-I would now operate daily non-stop flights to Dubai from Mumbai, Delhi and Kochi as well as daily flights between Kochi and Abu Dhabi/Muscat.

IA also operates on most these routes, and operates daily flights to Dubai from Delhi apart from operating on the Kochi-Muscat route.

IA, with its balance sheet soaking deeper into the red, has also requested the ministry to grant permission to withdraw operations on unviable sectors including the north-east and operation between smaller cities in Kerala, Gujarat, Tamil Nadu, Karnataka and Madhya Pradesh.

The airline is concerned over losing the lucrative Gulf sectors to A-I, which is a major source of its revenue.

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