Monday 25 February 2013

Govt withdraws international flying rights from Kingfisher.....

Govt withdraws international flying rights from Kingfisher
New Delhi: The Civil Aviation Ministry has withdrawn all bilateral international flying rights from the grounded Kingfisher Airlines.

The carrier, which has not operated a single flight since October last year, had the rights to fly to eight countries. The airline had 25,000 seats allowed every week internationally.

"Under the said rights, Kingfisher Airlines was allowed to fly to Bangladesh (14 services per week), Hong Kong (14 services per week), Nepal (7 services per week), Singapore (7 services per week), SriLanka (14 services per week + 21 services per week from unlimited 18 destinations), Thailand (21 services per week), UAE Dubai (21 services per week) and UK (7 services per week each from Mumbai, Delhi and Bangalore)," said a release from the ministry. "These traffic rights were allocated to Kingfisher Airlines between the year 2008 and 2011," the release added.

Other airlines will now be able to utilize this quota of 25,000 seats that was allocated to Kingfisher.

Under bilateral international agreements, traffic entitlements are made between countries by equally dividing passenger traffic. Sometimes code-share is invited between national airlines of the signatory countries for promoting services.

Traffic rights (international cities that the airline will serve) and capacity (number of flights or seats that can be serviced between the two countries), apart from tariffs, are decided between governments before the agreements are set in place.
Carrying a debt of nearly Rs. 8,000 crore and accumulated loss and liabilities of a similar amount, Kingfisher has been grounded since October 1 last year after its pilots and engineers went on a strike over non-payment of salaries.

The airline, which failed to submit a revival plan to the Director General of Civil Aviation, had its flying licence suspended on December 31.

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