Airlines likely to expand overseas as rule relaxed

In a move that may fast-track domestic carriers’ expansion plans in international market, civil aviation ministry on Tuesday allowed them to fully utilise the allocated bilateral rights under the Air Service Agreements (ASAs).Under ASAs, the government fixes the number of flights\seats to be operated by designated carriers of both countries each week. However, in practice, the ministry holds back permits and allows only a fraction of the allocated rights. Though this policy has been in effect since 2004, there was an unannounced freeze by the aviation ministry due to which many applications from the domestic carriers to expand operations abroad were pending for a long time. The ministry’s statement comes as a signal that the pending applications may get cleared now.

Source: Financial Express