Lok Sabha Question No. 1411 (UNSTARRED), answered on 2022-12-15
Subject: Flights from Kannur International Airport
Ministry: CIVIL AVIATION
Asked by: Kumbakudi Sudhakaran

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA

UNSTARRED QUESTION NO. : 1411

(To be answered on the 15 th  December 2022)

## FLIGHTS FROM KANNUR INTERNATIONAL AIRPORT

## 1411. SHRI KUMBAKUDI SUDHAKARAN

## Will the Minister of CIVIL AVIATION

be pleased to state:-

- (a) whether the Government has taken any measures to increase the number of flight services operating to and from Kannur International Airport in Kerala;
- (b) if so, the details thereof and if not, the reasons therefor;
- (c) whether the Government has taken note of the exorbitant ticket fares to and from Kannur airport compared to other airports that has to be borne by the passengers, primarily due to the fewer number of flights and if so, the details thereof;
- (d) whether the Government has taken any steps to ensure a check on the ticket fares to and from Kannur Airport and if not, the reasons therefor; and (e) whether the Government proposes to permit foreign carriers in Kannur airport, if so, the details thereof and if not, the reasons therefor?

## ANSWER

Minister of State in the Ministry of CIVIL AVIATION

(GEN. (DR) V. K. SINGH (RETD))

- (a) & (b): After the repeal of the Air Corporation Act in March 1994, the Indian domestic aviation market has been deregulated. Consequently, for commercial flight operations, airlines are free to induct capacity with any aircraft type for selecting whatever markets and networks they wish to operate across the country. Thus, it is up to the airlines to provide air services to specific places depending upon the traffic demand and their commercial viability, in compliance with the extant guidelines in this regard.
- (c) & (d):After deregulation of airline sector, the airfare is market driven and is neither established nor regulated by the Government. Air ticket prices generally vary depending upon the market forces. Airline pricing runs in multiple levels {buckets or Reservation Booking Designator (RBDs)} which are in line with the practice being followed globally. Due to dynamic fare pricing, the tickets bought in advance are much cheaper than those purchased near the date of travel.

The airlines are free to fix reasonable tariffs under the provisions of sub-rule (1) of Rule 135 of the Aircraft Rules, 1937 having regard to all relevant factors, including cost of operation, characteristics of services, reasonable profit and the generally prevailing tariff. There is no proposal with the Government for regulation of airfares on international sectors.

(e): Kannur International Airport was commissioned in December 2018. Within a period of one year, by Winter 2019 schedule, Indian carriers were operating 65 international services per week from Kannur. The Air Service Agreements are bilateral in nature and reciprocity is generally maintained in such agreements. In the past, due to grant of multiple points of call to foreign countries, an imbalance has been created wherein foreign carriers have access to multiple points in India while Indian carriers have access to only one or two points. Hence, the Government of India is not granting any non-metro airport as a new point of call to any foreign carrier for the purpose of operating passenger services.

The Ministry of Civil Aviation has launched Regional Connectivity Scheme (RCS) - UDAN (Ude Desh ka Aam Nagrik) on 21-10-2016 to stimulate regional air connectivity and making air travel affordable to the masses. In 2nd round of bidding under RCS-UDAN, RCS routes from Kannur Airport connecting  to  Cochin,  Bangalore,  Chennai,  Goa,  Hubli  & Thiruvananthapuram awarded to M/s Indigo have already commenced.

Kannur airports is open for RCS bidding under 'served airport' category which can be connected to any unserved and underserved airport under RCSUDAN.

In case, any bid is received connecting Kannur in future UDAN biddings, the same will be considered as per provisions under Regional Connectivity Scheme. RCS-UDAN is an innovative scheme first of its kind and airfare for one-hour journey of approx. 500 km on a Fixed Wing Aircraft or a thirty-minute flight on a helicopter connecting unserved/ underserved airports to key airports is capped at Rs. 2500.00.

There is maximum permissible Airfare cap for RCS seats as specified under the contract and there is no airfare cap fixed for Non-RCS seats.

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