The Hindu : National : Patel to discuss fleet acquisition with PM

Online edition of India's National Newspaper
Thursday, Jun 10, 2004

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National

Patel to discuss fleet acquisition with PM

By Vinay Kumar

NEW DELHI, JUNE 9. In a bid to expedite the long-awaited fleet acquisition plan of Indian Airlines and Air India, the Minister of State for Civil Aviation, Praful Patel, will soon meet the Prime Minister, Manmohan Singh, to work out a "transparent and speedy" process for clearing all procedural and technical hurdles.

Talking to The Hindu here today, Mr. Patel said that both Indian Airlines and Air India were suffering as the two carriers had neither purchased new aircraft nor added to their capacity for the past few years. "Even if Indian Airlines and Air India go out and purchase new aircraft, a majority of them would be replacing the ageing fleet. For induction of more aircraft, both the carriers have to resort to the leasing route," he said.

Mr. Patel said that his efforts would be focussed on strengthening Indian Airlines and Air India and improving their services. Asked if he would overrule the approvals of the two Boards for purchase of new aircraft, the Minister said that it was for the Boards to look into their recommendations in view of the "changed global scenario" and take into account what would be best for the two carriers. Emphasising upon expansion of the two carriers, he said that the entire civil aviation sector needed to be given a boost as there were just about 150 civilian aircraft for one-billion plus population. "This is a sector where much can be achieved and our government would not be lacking in its efforts to promote aviation sector and make it consumer-friendly and affordable," he said.

On modernisation and restructuring of Delhi and Mumbai airports, he said that Left parties would come around and the issue of reducing the foreign equity to 49 per cent from 74 per cent in the proposed joint venture would not pose any "problem." He said the modernisation of the two airports was long overdue. "This is an idea whose time has come and the Government would not delay the project. The two metros should have world-class airports that meet all global standards," he said.

Earlier, Mr. Patel also met a delegation of Air Corporations Employees' Union, representing the largest number of employees of Indian Airlines, and assured that the Government would protect both the carriers and improve their efficiency to international levels. The union, represented by its general secretary, S.K. Sharma, pointed out that IA Board had already approved purchase of 43 new Airbus A-320 aircraft and the company was quite competent to raise requisite funds on its own. "The Government has not cleared this matter and the expansion plan stands stalled," the union said.

On the permission given to private operators to ply on foreign routes, the union said that allowing them to operate on international destinations would "create chaos" and would not "allow a strong Indian carrier to develop and compete efficiently with strong foreign carriers who have large, modern fleets and worldwide networks."

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