The Hindu Business Line : Cabinet to take up pvt airlines' global flights next week

While the Indian Airlines fleet acquisition plan is to move a step closer towards fruition with the meeting of the Public Investment Board (PIB) scheduled for January 29, the dream proposal of private sector scheduled airlines to fly abroad is expected to be taken up by the Union Cabinet next week.

Official sources told Business Line that they were, however, sceptical as to whether the IA fleet acquisition plan would be able to get the Government's clearance before the code-of-conduct rules for elections come into force.

"It will take a few days before the minutes of the PIB meeting are firmed up. It is necessary to have the meeting in hand before we can proceed further. Therefore, it needs to be seen whether the proposals will be able to get cleared just yet," sources said. The IA board cleared the Rs 10,000- crore 43 Airbus aircraft acquisition proposal in March 2002.

However, the dream of domestic scheduled airlines to fly abroad is likely to come true soon. Sources said that the proposal, which is likely to be considered by the Cabinet, is to allow the private airlines to fly not only to the six countries grouped under the South Asian Association of Regional Co-operation (SAARC) but also to other parts of the world, except the Gulf region.

In effect, what the Cabinet nod for the proposal will mean is that the scheduled private sector airlines will be allowed to fly to any part of the world to which Air India (AI) and IA have the right to fly, but are unable to do so.

However, in keeping with the present policy, the first right of refusal to operate to these destinations is to rest with AI and IA. Sources indicated that how the routes would be disbursed among the private sector scheduled airlines is a decision that would be taken at a later date.

In addition, the civil aviation policy, which is expected to specify the exact level of foreign direct investment (FDI) to be allowed into the domestic civil aviation sector, is also likely to be sent to the Cabinet this month. Sources said that a clear indication on the ceiling of FDI in domestic aviation would emerge only after consultation with various key Ministries.