AAI not happy with carriers deploying smaller aircraft

A senior airline executive told The Indian Express that airlines may not necessarily be shifting capacity to ATRs,but the connectivity between the metros and mini-metros is improving,resulting in increased number of ATR landings and take-offs. In fact,Kingfisher Airlines announced recently the launch of its daily Kolkata-Patna service and a thrice-a-week Raipur-Ranchi service,deploying ATRs on this route. Jet Airways launched JetKonnect,a no-frills economy class service,when most of the airlines were cutting down costs drastically,deploying around 10 ATRs. In fact,last year Jet Airways had said that the only capacity addition in 2009 would be through ATRs in regional markets. Kingfisher Airlines and Jet Airways have a fleet of 28 and 14 ATRs respectively. Not only do the airlines benefit from using ATRs in terms of exemption from paying landing and parking charges,but they also save on fuel costs. As a special concession,a fixed 4 per cent sales tax is charged on aviation fuel for ATR operations.

In its proposal to the ministry,the authority has contended that the policy of rebate for smaller aircraft was introduced to encourage regional airlines and promote connectivity to remote areas. Full-service airlines like Jet Airways,Kingfisher Airlines and Air India are deploying ATRs on some of the key routes. It defeats the purpose for which the rebate was introduced. We have raised the matter with the ministry and brought it to their notice, said a senior AAI official.

ATRs,used to connect short-haul routes,with distance less than 750 kms,and are exempt from paying certain aeronautical charges. In recent times,the airlines have deployed smaller aircraft on some of the routes that saw a slump in traffic due to the economic slowdown.

Typically,the routes could be connecting Delhi to cities like Jaipur,Udaipur,Manali and within Northeastern cities.