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The Ceylon Chamber of Commerce (CCC) has requested the Government to review bilateral aviation agreements and allow private Indian airlines to fly to Sri Lanka.

Chairman of the CCC, Chandra Jayaratne has written to the relevant ministries and officials with the belief that national economic value addition and the growth of the tourism sector can be facilitated by enhancing the level of Indian tourists to visit Sri Lanka.

With this in view, the CCC has prepared a detailed note with some useful strategies to leverage growth through the private sector.

Currently the bilateral air agreement between India and Sri Lanka stands as follows:

a) SriLankan Airlines named as the designated carrier from Sri Lanka.

b) Indian Airlines and Air India are the designated carriers from India.

c) Both countries could exercise upto 4,050 seats per week between the two countries.

d) Due to an agreement reached by SAARC unbridled access between the capitals resulted in the bilateral utilization not being applicable for operations between Colombo and Delhi and vice versa. Hence, Sri Lankan Airlines operate between the two capitals on a code share basis with Indian Airlines.

e) SriLankan Airlines operate between Colombo and Mumbai and vice versa also on the same basis.

f) SriLankan Airlines operation from Colombo to Chennai, Colombo to Trivandrum, Colombo to Trichy and vice versa are on a bilateral basis.

SriLankan Airlines is keen to introduce operations to Hyderabad and Bangalore and also increase frequencies to the other points they are currently operating to.

Unfortunately, the Indian authorities have not considered such request as SriLankan Airlines in the past has been practising the carriage of Indian origin passengers on sixth freedom traffic basis, which means traffic originating in India channelled to a third country on the Sri Lankan Airline network via Colombo, which quantum was calculated by them as 70% of the load.

Due to this reason, the Indian authorities were of the opinion that there is no justification to enhance the existing capacity for SriLankan Airlines.

Meanwhile, Indian Airlines does not exercise their bilateral rights even upto 50%. Whilst the other designated Indian carrier Air India has never operated to Sri Lanka. We are aware, that the private domestic airlines of India, namely, Jet Airways and Sahara Airlines are very keen to operate to Colombo, but, we were made to understand that the aviation policy of India do not allow private Indian carriers to operate beyond their domestic territories.

The marketing pattern of SriLankan Airlines operation to India since 24 July 2001 has changed drastically.

Currently, they are not in a position to carry the sixth freedom traffic out of India to the degree that they did, because of the curtailment of their operation out of Colombo to other destinations, due to the fleet reduction from twelve aircraft to eight aircraft, and they have no intention at present or in the medium term of fleet expansion.

This has resulted in the availability of capacity between the two countries and the industry has introduced a promotion from November 1, 2001 to attract the Indian traveller to Sri Lanka.

The month of November has recorded an increase inflow in excess of 2,200 passengers as a result of this promotion.

This promotion will continue till December 20, 2001 and will be reintroduced on January 10, 2002 till end June 2002, and we expect a phenomenal increase of tourist traffic from India to Sri Lanka.

If the Indian authorities consider allowing the Indian domestic private airlines to operate within the region this undoubtedly will increase the air capacity to fulfill the bilateral diversity that currently exists from India.

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Copyright 2001 The Associated Newspapers of Ceylon Ltd.
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