The Directorate General of Civil Aviation (DGCA) has dropped the Indian Water Clause from other private airlines in the allocation of international traffic rights.
New Delhi: Two months after Tata Sons took Indian water control from the government, the former Indian national operator will no longer enjoy priority in the allocation of international traffic rights, according to a series of revised guidelines issued by Aviation Watchdog, Directorate General of Civil Aviation (DGCA).
DGCA dropped the clause that gave a former state -owned airline was profitable compared to other private airlines in the revised guideline issue on April 19.
The deleted clause said, “Considerations that must be given to the operational plan submitted by Air India before the allocation of traffic rights to applicants who meet other requirements.” This clause is part of the guidelines for granting permits for Indian air transportation businesses for the operation of international air transportation services scheduled, issued on March 15, 2017.
Bilateral air service agreements are negotiated between the government. The number of flights and destinations that can be operated by airlines between two countries is determined by these factors. This right, which is declared a number of seats or flights per week, is traded in a reciprocity. In India, the government holds rights and gives it to the airline at request.
121 Countries have signed an air service agreement with India. Despite being part of the United Arab Emirates (UAE), the Civil Aviation Ministry has signed a separate agreement with Dubai, Abu Dhabi, Sharjah, and Ras Al-Khaimah.
In January, Tata Sons took Indian water control from the government, formal returns for the first Indian airline born in the company in 1932 before nationalization almost 70 years ago in 1953 and began a turbulent journey that encouraged its economic feasibility to Brink’s cliff.
The airline, with his Maharaja mascot, was once famous for its luxury aircraft and services fought for by the founder of JRD Tata. Air India led a global flight explosion in the 50s, 60s and 70s.
Since the mid-2000s, Indian water reputation has declined when financial problems have increased when they began to lose market share to low-cost airlines such as spicejet and indigo.
In October 2021, the government announced that they sold 100% of their shares to the Tata Autos-to-Steel conglomerate for ₹ 18,000 Crore.
Tatas has won the offer by defeating the offer ₹ 15,100 Crore made by a consortium led by the Spicejet Ajay Singh promoter. The price of reserves is ₹ 12,906 crore.