http://www.financialexpress.com/fe_full_story.php?content_id=148010
Weak air routes to be auctioned 
 
ATREYEE DEV ROY 
Posted online: Monday, December 04, 2006 at 0340 hours IST
NEW DELHI, DEC 3 :  The government is mulling auctioning of non-profitable routes to exempt carriers from flying these sectors, so far mandatory to be eligible for metro operations. Not just this, airlines will now have to pay higher fees for using airports during peak hours. These are two of civil aviation minister Praful Patel’s major reforms initiatives.
As part of the civil aviation policy, the government plans to do away with the current system of route dispersal guidelines, to be replaced with minimum subsidy biddings. This is aimed at providing subsidy support to a carrier operating at the lowest cost. For this purpose, the government will identify uneconomical routes, decide minimum capacity requirements and oversee the bidding process.

According to Patel, there is also a need to evolve differential pricing for different time-slots at major airports across the country. The maximum traffic is between 6 am-10 am and 5 pm-10 pm. Most privately owned airports globally charge a premium on peak-hour landings and take-offs that can range from a few hours to days at times.

Currently, landing fees are charged according to the weight of an aircraft. From a couple of thousand rupees for small private jets, the charges can go up to Rs 20,000 for Boeing 737s or Airbus 320s.

“Peak slots should be more expensive,” Patel said. According to him, though most airlines are allotted slots in keeping with their applications, this needs to be regulated until additional infrastructure is built to handle the growing traffic.

According to sources, the Airports Authority of India has been directed to ensure at least 45 landings and take-offs within 60 minutes during the peak hours. At present, the Delhi and Mumbai airports handle only 15 to 20 landings and take-offs in an hour. A delay of over 30-45 minutes means approximately an extra 2,000-4,000 kilo litres of fuel for a 100-seater aircraft as it awaits landing clearance.

Sops for regional carriers

For stronger regional connectivity, airlines with a fleet of less-than-80-seater aircraft flying regional routes from any one metro airport will be exempted from paying airport and navigation charges for the first five years of operation. Airlines starting services to and from cities not connected will be exempted from these charges for one year, according to the new aviation policy. Emphasis will be on developing aircraft maintenance and repair facilities. As a result, the government may allow 100% FDI in this sector.