New Delhi, Sept. 7:
The Ministry of Civil Aviation has taken a dim view of the Planning Commission participating in a function sponsored by the Dubai-based Emirates.
What has irked the Ministry is that a study was released at the event highlighting the economic benefits to India if the airline is allowed to operate more flights.
Sources told Business Linethat Minister for Civil Aviation Ajit Singh telephonically spoke to the Deputy Chairman of the Planning Commission Montek Singh Ahluwalia and conveyed the economic benefits that will flow to the domestic economy if airlines from India are also allowed to operate more flights.
The function was attended by Pronob Sen, Principal Advisor, Planning Commission.
With foreign airlines carrying more Indian passengers bound for international shores than Indian carriers, the grant of additional seats to foreign airlines has been a sensitive topic.
Airlines from India argue that most international carriers carry passengers from India not only to their home country but also onwards to different destinations around the globe. Indian carriers argue that Indian passengers being flown onwards from the home base of international carriers should ideally be flown by a domestic airline.
In 2008, Emirates was allowed to operate 54,200 seats per week, an addition of 23,000 seats a week. The airline currently operates 184 weekly flights to India.
In the study Emirates points out that allowing it to operate 80,000 seats a week into India or carry 6.16 million passengers annually would lead to a direct contribution to the Indian economy of $363 million and have a multiplier effect of $720 million.
http://www.thehindubusinessline.com/todays-paper/tp-economy/article3871650.ece
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