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NEW DELHI, India (Reuters) --India's private airlines can begin flying to neighboring Sri Lanka under a new policy, the civil aviation minister said, breaking a decades-old monopoly of state-owned carriers over international routes.
Guidelines allowing private carriers to fly to the south Asian nation had been issued by the industry regulator following government approval of the new policy in January, Rajiv Pratap Rudy told reporters at an industry seminar.
"The director general of civil aviation has already issued orders. The private domestic scheduled operators (airlines) can start operations any day," Rudy said.
Until now, only two Indian state-run carriers were allowed to fly on lucrative international routes, but in January the cabinet approved a proposal allowing private airlines to fly to six countries of a regional South Asian group.
The policy also needs approval of other governments, Rudy said.
"As for now, it is only Sri Lanka which has made the offer and permission has been granted for Sri Lanka," he said.
For years, India's aviation industry was a monopoly of international flag carrier Air-India Ltd and the mostly domestic Indian Airlines Ltd.
But the government threw open the industry to private companies as part of an economic liberalization plan.
More than a decade later, Jet Airways and Air Sahara, India's two main private carriers, have more than half the share of the domestic air travel market helped by their younger fleet.
Both are keen to begin flying to Sri Lanka.
Rudy said another plan to allow private airlines to fly to countries outside the South Asian region would be considered afresh by a new government after national elections this year.
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