Indian airlines to be allowed to expand overseas operations

  • Indian airlines including state-run Air India will now be allowed to use maximum permissible bilateral flying rights, allowing them to expand their overseas operations, the Aviation Ministry said on Feb 14.
  • India has been under-utilising its bilateral agreements under self-imposed restrictions because struggling Air India, the country's flag carrier, was unable to use the maximum limit.
  • "Under the new arrangement, code share operations will be encouraged," the ministry said in a statement.
  • The move is a big positive for all carriers, said Kapil Kaul, regional head of the Centre for Asia Pacific Aviation, a consulting firm.
  • Most Indian airlines are losing money as a result of high fuel costs, huge debts, cutthroat competition and a slowdown in the economy.

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