The Hindu : Cabinet nod needed for private airlines' Colombo flights: Rudy

Online edition of India's National Newspaper
Thursday, Nov 13, 2003

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Cabinet nod needed for private airlines' Colombo flights: Rudy

By Our Special Correspondent

NEW DELHI NOV. 12. Although the Vajpayee Government has agreed to allow private domestic carriers to fly to Sri Lanka, the proposal will need the clearance of the Union Cabinet to enable the airlines to begin international operations, the Civil Aviation Minister, Rajiv Pratap Rudy, said here today.

"The issue of private airlines being allowed to fly to Sri Lanka is likely to come up for a discussion in the Cabinet before the coming winter session of Parliament,'' Mr. Rudy said, talking to reporters during a conference on `Century of Aviation', organised by the Confederation of Indian Industry (CII). He said the Ministry was open to making changes, if required, in the bilateral arrangements between India and Sri Lanka. Both private carriers - Jet Airways and Air Sahara - had announced their readiness to begin services to Colombo at short notice.

On the new aviation policy, Mr. Rudy said it was on the anvil. The Naresh Chandra Committee had prepared a blueprint and set the ground rules for the entire aviation sector. It would be placed before Parliament in the coming session for ratification. The committee's blueprint has "almost been frozen'' and discussion on most aspects completed, he said.

Admitting that there were certain backlogs, which the Government was committed to overcoming, in the aviation sector, he said it was important to initiate policy changes and set in place a different mindset for the industry to flourish. Private participation in ground handling services would need the Cabinet's clearance.

Privatisation of airports

Referring to the roadmap for privatisation of Mumbai and Delhi airports, Mr. Rudy said the entire project in both the airports would be handed over for modernisation to the selected company by March 30 next year. The financial consultant for the project would be selected on Friday. Though Singapore and Dubai had become international hubs in this region, Mr. Rudy said, Mumbai and Delhi airports were suitably located to operate as hubs.

Robert Aaronson, Director-General of Airports Council International, said negotiations were on between the U.S. and the European Union for creation of "open aviation area'' and liberalisation of air services market. According to his projection, between now and 2020, the total air traffic would grow at an average annual rate of 4.3 per cent. The Asia-Pacific region would have a projected growth rate of 5.9 per cent, while domestic and regional traffic here would rise by six per cent.

Cyrus Guzder, Chairman of the CII's Civil Aviation Committee, urged the Government to consider having multiple airlines as designated carriers, so that they could operate to foreign destinations as national flag carriers.

The Senior Manager (Operations) of Air Asia, second designated airlines of Malaysia, said the carrier was looking at the possibility of operating low-cost, no-frill services from Malaysia to several Indian cities, including Chennai, Madurai, Bangalore, Thiruvananthpuram, and Delhi.

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