New Delhi, Aug. 11: The economic survey has asked the government to build airline hubs in India which could compete with the hubs in the UAE and South East Asia that were taking away Indian traffic to the US and Europe from domestic carriers.
The survey also suggested a review of "the 0/20 rule so as to allow private airlines to fly abroad" in return for flying to smaller cities and towns.
The 0/20 rule signifies that airlines need a fleet of at least 20 aircraft to be allowed to fly abroad. Earlier airlines also required a 5-year experience, which has now been waived.
It has also recommended "committed action plan on divestment of Air India to enhance its operational and management efficiency".
The survey says the top destinations for passenger traffic to and from India were the UAE, Saudi Arabia, Qatar, Oman, Singapore, Malaysia and Thailand.
"However, these countries are being used as stop-overs/hubs by their respective home airlines to carry passengers for onward destinations of the US, Canada and Europe," the survey said.
"Indian domestic airlines have a very lower share in international traffic," it said. Officials said about 38 per cent people fly in and out of India using Indian carriers, while the remaining 62 per cent fly foreign carriers.