Hub tailwind likely for Indian airlines

Hub policy lays ground for competitive fares by domestic carriers

- Anu Sharma

Indian airline companies brewing plans to increase international flights might just get a fillip from the government. Under the draft national aviation hub policy, the government proposes to introduce differential charges for Indian and foreign airlines at airports in the country, two officials said. That would mean foreign airlines would have to pay more than their Indian counterparts for landing, parking, and ground handling, among others.

Differential charges would allow India's airlines to provide more competitive fares for international competitive fares for international destinations compared with foreign airlines, and therefore help them establish a stronghold in international travel.

Last month, the ministry of civil aviation sent a draft policy note to other ministries-home, finance, external affairs, and tourism, among others-airlines and airports, seeking their feedback before issuing the policy note for public comment, said one of the two officials cited above, both of whom spoke on the condition of anonymity.