The Government in a decisive action has allotted Air India about 5,700 weekly seats of the now-grounded Jet Airways unutilized quota on competitive India- Dubai route. Moreover, Air India has been promised another 5,000 seats on India-Qatar route beside another 4,000 more seats on the India-London route. This move comes on the heels of grounding of Jet Airways and the subsequent re-allocation of Jet’s unutilized International traffic rights.
As per reports, Air India is deemed to receive a preferential allocation of bilateral seat entitlements.
Other private players like Spicejet, IndiGo, GoAir, and Vistara along with Air India had vouched for a bigger share of the traffic rights during a Civil Aviation Ministry meeting. IndiGo co-founder Rahul Bhatia had suggested an allocation of foreign traffic rights based upon the carrier’s fleet capacity. On the contrary, Vistara put forth that smaller players be given a bigger share of the pie.
While re-allocation of traffic rights would increase capacity on popular routes, it would dent the valuation of Jet Airways which is already in deep trouble.