New Delhi: Tata Group-owned Air India has lost its preferential access to bilateral rights that are needed to operate flights to another country, according to a circular issued by the Directorate General of Civil Aviation (DGCA). Air India had preferential access to bilateral rights, which are granted under air services agreements signed between two countries -- as it was a government-owned national carrier. However, the Tata Group took control of Air India on January 27, after successfully winning the bid for the airline on October 8 last year.
Clause 3.6 of the previous DGCA circular stated, "Due consideration shall be given to the operational plans submitted by Air India Limited before allocation of the traffic rights to the other eligible applicants." The fresh DGCA circular, which was issued on April 19, removed the clause. "The central government may at its discretion grant or deny allocation of traffic rights to any air transport undertaking having regard to its preparedness to undertake such operations, viability of the operations on a particular route, overall interests of the civil aviation sector etc.," the fresh circular read.
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