The Hindu Business Line : Aviation policy may have to wait awhile

WITH the poll dates announced and the `Model code of conduct' coming into play, the civil aviation sector will have to wait some time more for a comprehensive sectoral policy.

Besides, there is bad news for the air passengers, too, as far as flying in new aircraft is concerned. For, the plans of Indian Airlines acquiring 43 Airbus aircraft at a cost of over Rs 10,000 crore has got pushed back a bit further. The IA board had, in March 2002, cleared a proposal to acquire the 43 aircraft. The airline has been awaiting a nod from the Government since then, to sign up with Airbus Industrie.

However, Air India's plan for fleet acquisition is not likely to be affected to that extent, as only the initial paper work for Government clearance had just about started when the poll dates were announced.

While the IA fleet acquisition has already cleared the first stage with the pre-Public Investment Board giving its nod, the project report for AI fleet acquisition is said to have reached the Ministry only in January this year.

The poll dates announcement also means that the private sector scheduled airlines will have to wait a bit longer to fly globally. While the private sector airlines have received the nod to fly to the six nations of the South Asian Association of Regional Cooperation (SAARC), they will have to wait till a new Government at the Centre clears their foray to the other parts of the world.

It may be recalled that in February this year, the Union Cabinet's meeting on allowing private sector airline to go global had remained inconclusive. Sources say that at the meeting, some Cabinet members objected to allowing private sector domestic airlines from going global citing security reasons.

However, the domestic aviation industry can take heart. Although the Cabinet failed to clear the Naresh Chandra Committee report and the civil aviation policy, there is optimism that these proposals will get the Centre's nod after the general elections.

Official sources told Business Line that "irrespective" of the political party or coalition coming to power at the Centre, the proposals that the Ministry of Civil Aviation had sent for the Cabinet's consideration on February 4 will get the final nod.

Government sources point to the fact that the proposals which were sent to the Cabinet on February 4 obtained the "express approval" of senior leaders, including the Prime Minister, the Deputy Prime Minister, the Finance Minister and the External Affairs Minister. And, therefore, if the same dispensation returns to power, the proposals will get the go-ahead.

"If the present Government is not returned to power, it will be safe to assume that it will be a coalition that is likely to form the Government at the Centre. Then also, the proposals should sail through, as most of the major political parties are in favour of the proposals which were presented to the Union Cabinet," sources said.

Meanwhile, sources say that it is wrong to accuse the Government of being selective in implementing the civil aviation policy, especially as the issue was not discussed at all by the Cabinet.