India: prices on airline tickets to grow?
The Indian government is planning to change the way the distribution of seats for foreign airlines, with the aim of protecting domestic airlines from foreign competition, reported Arabian Виѕіпеѕѕ with the reference to the source in the government of the country.
Aviation of the two countries is subject to special agreements, in which it is determined, the number of flights and the number of passengers that the airline can carry. Foreign airlines, исчерпавшие their potential, need the extra capacity, but the Indian government is of the opinion that it is necessary to protect domestic airlines, and offers an auction, on the the foreign airlines in the location of additional capacity.
Auction, instead of the transfer of places through bilateral agreements, leads to an increase in the cost of the airlines, that the impact on the price of Tickets.
What the money concerns, which are on auctions, they can be used for the support of the Indian companies.