Indian carriers to enjoy impressive increase in seat utilisation this season

Indian carriers to enjoy impressive increase in seat utilisation this seasonIndian carriers will enjoy an impressive increase in seat utilisation on flights for overseas destinations this winter season, while foreign carriers flying into India will suffer a decline in the same, as per the civil aviation ministry's newly released data.

According to the civil aviation ministry, seat utilisation by Indian carrier will jump to 42.56 per cent (377,724 seats per week) of the quota of seats permitted under bilateral traffic rights during the current winter season, as compared with around 20 per cent seat utilisation in the corresponding season of previous year.

On the other hand, Indian carriers' foreign rivals will suffer a decline a small decline in seat utilisation, from 40 per cent in the winter season of last month to 39.78 per cent this season.

By the winter of next year, domestic carriers will be able to utilise more than 50 per cent of their quota.

Speaking on the topic, a senior ministry official said, "Indian carriers will be able to utilise over 50% of their quota by the winter of 2013 if we go by the clearances for foreign destinations the minister gave a few days ago."

This is going to be the first time when Indian carriers will potentially beat foreign rivals in utilisation of seats. Indian airlines gained permission to fly to foreign destinations in 2004, but they, until now, unable to match the seat utilisation of foreign rivals mainly because of policy constraints.

Meanwhile, a source said that the government has plans to tweak its FDI (foreign direct investment) policy in the aviation sector in a bid to attract foreign investment.