The Hindu Business Line : Opening up the aviation sector

Given that more than 70 airports in India make losses and that about 70 per cent of the net profit registered by the Airport Authority of India (AAI) during 2002-2003 was earned by the airports in Delhi and Mumbai, the recommendation to privatise Delhi and Mumbai airports will only further private profit while undermining the very viability of the AAI.

The proposal to set up Aviation Economic Regulatory Authority (AERA) without establishing regulatory frameworks before the entry of the private operators will result in problems in the airport sector, as have arisen in the power and telecom sectors.

Establishment of the proposed Essential Air Services Fund can hardly help compensate the loss by non-remunerative airports, which outnumber the profit-making ones. It would make better financial sense if the Government privatised only the non-aviation facilities, such as operation of hotels, car parking, and so on, and not the entire airport sector.

C. Ramesh

Keeramangalam (TN)

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The Naresh Chandra Committee's recommendations on "Opening up aviation sector" (Business Line, December 9) are welcome. The panel's various proposals could make air transport more affordable and pave the way for a more liberal civil aviation policy.

It is in tune with the open-sky policy declared by the Prime Minister. It should spur interest in more direct flights to various countries, giving a boost to the growth of commerce and industry and tourism.

A. Jacob Sahayam

Thiruvananthapuram

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