Sunday, October 6, 2024

How Open Are Open Skies

By Bikram Vohra

Open skies by its very nature is a contentious issue. Spawned through the prism of war it was originally military at the inception.

It was in 1955 that President Eisenhower proposed the first “Open Skies” initiative even before reconnaissance satellites were available. At a Geneva Conference meeting with Soviet Premier Nikolai Bulganin, he suggested that the United States and the Soviet Union conduct surveillance overflights of each other’s territory to reassure each country that the other was not preparing to attack.

This is the kernel of sharing skies that developed into a major policy statement when the United States, Canada, and 22 European nations signed the Treaty on Open Skies on March 24, 1992.

Even though there is still some resistance to opening the strings of protectionism, the shrinking of the world calls for just such a competitive edge.

An Open Skies policy provides consumers with more choices for airlines, routes, and pricing. This can result in greater flexibility for travellers and more competitive prices for airfares.

Opening up the skies can help promote economic growth in regions by increasing air connectivity. Increased air travel opportunities under an Open Skies policy can facilitate cultural exchange between countries.

What then are the areas that cause concern and how can they be addressed?

Increased competition from foreign airlines under an Open Skies policy can lead to job displacement within domestic carriers. Harmonizing regulatory standards and practices across countries can be complex under an Open Skies policy. Some argue that Open Skies agreements can distort the market by favouring certain airlines over others.

The expansion of air travel under an Open Skies policy can strain existing airport infrastructure, air traffic control systems, and security measures. This can lead to congestion, delays, and capacity issues at airports and within the airspace and prompt slot wars. Some of the issues that come under scrutiny include more Cat III airports, upgraded air traffic controls, a stronger encouragement to the MRO sector, tighter controls on snag sheets and “Go’ item lists, more schools for crew and staff training and investment in simulators.

India has a cultural lure, a powerful hospitality sector and a historical richness for tourists. Add adventure, sport and nature and we are sitting on a goldmine.

Despite the grand surge in aviation per se, 11 carriers have shut down in the past decade. Plans have to be put in place to see if anything can be done to avert these collapses even when poor management, poor planning and poor route mapping trigger the fall.

Is our infrastructure by way of airports and networks, transportation and maintenance keeping pace with the headlining-making orders given to Airbus and Boeing? This need to balance fleet investment with infrastructure and staffing is vital.

The impasse with Gulf carriers is a prominent issue that has impacted India’s aviation sector and its open skies policy. The dispute primarily revolves around allegations of unfair competition and market distortion levelled against airlines from the Gulf region, including Emirates, Etihad, and Qatar Airways. Some of the key points contributing to the impasse with Gulf carriers are:

Indian airlines have raised concerns about alleged subsidies received by Gulf carriers from their respective governments, enabling them to offer lower fares and expand rapidly. This has been perceived as unfair competition that distorts the market and disadvantages Indian carriers.

The imbalance in air services agreements between India and Gulf countries has been a prickly issue. Indian carriers argue that the favourable terms provided to Gulf carriers under these agreements have placed them at a disadvantage, limiting their ability to compete on a level playing field.

Issues related to slot allocation at Indian airports, especially in major hubs like Delhi and Mumbai, have complicated the impasse with Gulf carriers. Limited slot availability and competition for prime slots can impact the ability of all airlines, including Gulf carriers, to operate desired frequencies and expand their services.

In the past the Indian government has faced pressure to address the perceived challenges posed by Gulf carriers, leading to regulatory scrutiny and calls for measures to safeguard the interests of the domestic aviation industry. This has added to the complexity of the impasse and raised questions about the future of bilateral aviation relations.

Industry reports have suggested that Indian aviation per se and its carriers could in the future well become the viable alternative to Gulf carriers as the stopover point on the east-west routes.

Some of the issues that come under scrutiny include more Cat III airports, upgraded air traffic controls, a stronger encouragement to the MRO sector, tighter controls on snag sheets and  “Go’ item lists, more schools for crew and staff training and investment in simulators.

Congestion and delay are issues that need to be rectified.

India’s regional connectivity scheme, UDAN (Ude Desh ka Aam Nagrik), has aimed to enhance air connectivity to underserved and unserved regions. To make India an East-West aviation hub, several steps can be taken to enhance infrastructure, connectivity, policies, and partnerships. Here are ten steps that can contribute to achieving this goal:

Upgrade airports This will allow for increased air traffic between East and West.

Invest in advanced air traffic control systems and technologies to improve efficiency and safety in managing increasing air traffic to optimize flight routes and reduce delays.

Establish partnerships and collaboration agreements with major airlines, both from the East and the West, to encourage more direct flights and connectivity. This includes attracting international carriers to operate routes to and from India. And is the rocky part.

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