should encourage competition in transport sector
Yahoo News, February 17, 2012
government should take active steps to encourage competition in
the transport sector to allow passengers to benefit from low costs
and greeater choices, consumer rights group CUTS International
"There is a need for the government to take bold steps in sectors
such as passenger transport," said CUTS International secretary
general Pradeep Mehta, citing the recent decision to end a
decade-old stranglehold of state-owned Air India on foreign flying
According to Mehta, the government should do away with section 104
of the Motor Vehicles Act which restricts the grant of permits for
notified areas or routes.
"section 104 is an utter violation to competition and mandates
that temporary permits to private parties in respect to notified
area or route can be provided only if the state transport
undertakings has not applied."
development comes as the government Feb 14 allowed domestic
private airlines to expand their overseas operations by using the
maximum permissible limits of bilateral flying rights.
far, only Air India had the right of first refusal to fly on
international routes agreed between India and foreign countries
through bilateral air service agreements (ASAs).
Feb 14 decision freed up flying rights on the under-utilised
routes reserved for the flag carrier.
Indian carriers utilised just 20 percent of their overseas
entitlement, against 39 percent into India by foreign airlines
between January to November 2011. The share of the passenger
market emanating out of and into India varies from sector to
Indian carriers use less than 10 percent of the allowed capacity
in Europe and the rest is being utilised by foreign carriers. In
the Far East markets, the numbers are around 40 percent with
domestic carriers and 60 percent with foreign carriers
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