The government asked domestic private airlines to take steps to optimise operational capacity and said that they should follow a hub and spoke model.

According to sources, Civil Aviation Minister Praful Patel in a meeting with the airline representatives suggested setting up a new airport in Nagpur for this purpose. This model was proposed to ensure better connectivity and to allow a higher utilisation of capacity by the airlines.

In this model, the airlines will make an airport at a central position as a hub airport for the whole country and will use it to service the whole region. They will fly into the hub airport and take onward journey from there.

The government also ensured the private airlines that it would look into the issue of oil companies providing them ATF at import price parity, which results in a 20 per cent increase in the prices.

Besides, the issue of a uniform sales tax would also be looked into. The government also agreed to take up the issue of domestic Indian carriers being not allowed to operate out of Kathamndu airports during the night with the relevant authorities.

As per the present norms airlines are not allowed to operate out of the Kathmandu airport during nights, forcing the domestic carriers to limit their service in the morning.

Domestic carriers have been pressing the government take up the issue with the airline agencies in Nepal so that they can operate in the night. Airlines are of the view that they would be able to rationsalie operations if they are allowed to operate during the night.

Besides, issue of operational losses in the North East sector, despite a near full capacity, will also be looked into. The government has sought information from the private carriers on this issue.

"It was pointed out that despite a near full capacity this route suffers losses. The government wants to look into this," said a source.

The issue of a single agency handling the ground handling facilities in most of the domestic airports will also be examined.