Registrar General High Court of Meghalaya v. State of Meghalaya
2019-05-14
H.S.THANGKHIEW, MOHAMMAD YAQOOB MIR
body2019
DigiLaw.ai
JUDGMENT : 1. In compliance to the order dated 03-05-2019, on behalf of the Ministry of Civil Aviation affidavit has been filed wherein Mr. Umesh Kumar Bhardwaj, Under Secretary, Ministry of Civil Aviation has stated that a meeting was held on 08-05-2019 under the chairmanship of Secretary, Ministry of Civil Aviation with the representatives of Director General of Civil Aviation, Airport Authority of India and M/s Zexus Air Services Private Ltd (Zoom Air). The operation of CRJ200 of Zoom Air on Delhi-Shillong sector was thoroughly discussed. The following issues came up for consideration:- (i) Air Operators Certificate in respect of Zoom Air was valid till 05-03-2019, thereafter, not extended because the airliner did not comply with the requirement of five aircrafts within the prescribed time frame. That being so, the airliner, Zoom Air was advised that it needs to validate the AOC for scheduled operations. In this behalf, learned ASG stated that it will not be an issue if other issues are resolved, that way Zoom Air shall be the beneficiary. (ii) While discussing RCS-UDAN and availability of Viability Gap Funding and fare caps, the representative of Zoom Air stated that it is possible to take full load of 50 passengers from Hindon (Delhi)-Shillong, however, there is substantial load penalty on the direct flight from Shillong - Hindon(Delhi). A tabulated approximate cost analysis based on inputs from Zoom Air has been made mention of suggesting that for the sector Hindon(Delhi)-Shillong, load factor is 100%, total operating cost is 6,25,000, total VGF is Rs.1,51,725, total ticket recovery from 25 seats is 95,525, the balance amount to be recovered by selling the remaining 25 seats shall be 3,80,750, that means per ticket out of 25 tickets is to be sold at the cost of Rs.15,230. 2. According to learned counsel for Zoom Air no passenger will opt for flying in the aircraft as against those 25 seats because the cost will be very high. Regarding the sector Shillong-Hindon(Delhi), load factor will be 60%, means the aircraft can carry only 30 passengers out of which VGF will be for 25 seats amounting to Rs.95,525 and remaining 5 seats cost will be Rs.76,150 per ticket, no passengers will opt for these 5 seats. 3. Learned ASG submits that there is another option i.e., the airline can take indirect circuitous route i.e., from Shillong - Bagdogra and then from Bagdogra-Delhi.
3. Learned ASG submits that there is another option i.e., the airline can take indirect circuitous route i.e., from Shillong - Bagdogra and then from Bagdogra-Delhi. In the sector Shillong Bagdogra, they can carry only 30 passengers and will get VGF for 25 seats whereas from Bagdogra-Delhi, the load factor will be 100%. 4. Learned counsel for Zoom Air states that in both cases commercial viability issue remains, therefore, he is under instruction to state that it will not be possible for Zoom Air to operate. The concern of Zoom Air is also genuine, no doubt they are getting lot of concession i.e., renewal of license and exclusive right to operate in two sectors i.e., Delhi-Shillong and Shillong-Bagdogra but despite that the airline has to operate to earn not to suffer loss. 5. Faced with a difficult situation and the object of monitoring by medium of this Public Interest Litigation uncertain situation is encountered wanting a solution. 6. At this stage, learned Advocate General has given two genuine suggestions i.e., Civil Aviation Ministry, if possible, can explore to give VGF for all 50 seats from Delhi-Shillong and all 30 seats from Shillong-Delhi. In addition thereto, as per RCS, VGF for 25 seats there is a cap i.e., per seat has to be sold @ Rs.3700 and the price for the balance 25 seats is the choice of the airliner. The cap of Rs. 3700 as a special case can be increased to a permissible extent upto Rs.5000-6000 per seat so as to meet the financial viability. 7. Executive Director of RCS, Mr. G.K. Chaukiyal present in the Court submits that the RCS has been introduced with the object of connecting the remote areas and for achieving that object VGF for 25 seats is permissible and those 25 seats are to be sold at the cap as fixed i.e., Rs. 3700. 8. Looking into the matter from all perspective and keeping in view the connected issue for the convenience of the inhabitants of Meghalaya, the matter is required to be looked into afresh by all stake holders so as to ensure that a direct flight operates from Hindon(Delhi)-Shillong and back.
3700. 8. Looking into the matter from all perspective and keeping in view the connected issue for the convenience of the inhabitants of Meghalaya, the matter is required to be looked into afresh by all stake holders so as to ensure that a direct flight operates from Hindon(Delhi)-Shillong and back. The suggestion given by the learned Advocate General in our considered view shall be the most viable solution to the problem if settled by the concerned Ministry, therefore, we direct the respondent authorities to consider the matter on the following lines: (i) As a special case for achieving the object of RCS, 100% seats shall be brought under the VGF. (ii) The cap for each ticket under VGF as already fixed upto Rs.3700 can be considered to be extended upto Rs.5000, likewise all the 30 seats i.e., 60% load factor from Shillong-Delhi can also be brought under VGF and the cost of all 30 tickets can be considered to be raised upto 6000, in both cases, the RCS may require some modification or alteration, same shall be taken up which infact shall be a step in the right direction to advance the cause and object not only of RCS but of this Public Interest Litigation in the interest of people of Meghalaya. (iii) Zoom Air shall prepare information in a tabulated manner as to what can be the possible effect of VGF for all 50 seats and extent of increasing the cost of the subsidized tickets so as to make the operation of Zoom Air commercially viable. The said information shall be submitted in tabulated form by the Zoom Air to the Civil Aviation Ministry within three days. Thereafter, the authorities concerned shall examine the same and have a meeting with the representative of Zoom Air and find out what shall be viable and acceptable, both from the stand point of Zoom Air as well as stand point of RCS, thereafter, to move the proposal for modification of the RCS. The Ministry of Civil Aviation in the process shall also explore the possibility of providing further subsidies as shall be permissible and shall also consider other factors as shall be relevant in this behalf. 9. Learned counsel for Zoom Air states that Zoom Air in the aforesaid background will work out the cost and the financial viability, the report will be submitted to the Civil Aviation Ministry on 17-05-2019.
9. Learned counsel for Zoom Air states that Zoom Air in the aforesaid background will work out the cost and the financial viability, the report will be submitted to the Civil Aviation Ministry on 17-05-2019. On submission of the report, Civil Aviation Ministry will examine the same as directed above and will hold a meeting with the representative of Zoom Air on 20-05-2019 and then file its response on 24-05-2019. 10. List again on 24-05-2019.