Indian government looks to tighten capacity through force

For the first time since the opening up of the Indian aviation sector, airlines may be asked to apply to the Government for any new capacity induction on various routes. The Civil Aviation Ministry is working on a proposal in this regard. The Government may prescribe number of seats to be added for a block period of two or three years. Then airlines will be required to apply for new capacity. The application will be considered and disposed on ‘first come-first serve' basis subject to various conditions. Accordingly, permission for aircraft import or acquisition will be granted.
While previous demand and supply on particular route will be kept in mind, the financial health of the airline will be one of the prime considerations. “The whole process has to be impartial and we will see that no airline suffers,” he said.
At present, airlines are free to add capacity on various routes according to their commercial requirements. They just need to apply to the Aircraft Acquisition Committee under the Civil Aviation Ministry for aircraft purchase or import.
Decision on the new system can be expected even before the summer schedule