The Hindu Business Line : `New civil aviation policy to focus on expansion'

THE thrust of the new civil aviation policy would be on expansion, said Mr Praful Patel, the new Minister for Civil Aviation. Expansion, he said, was required in both the private and public sector.

He told presspersons here that the high cost of air travel and the low-income structure in the country meant that just a small percentage of the travelling public could afford to fly.

He pointed out that though we had a population of 105 crore, there were just 110 civilian aircraft flying passengers within the country.

Queried on the privatisation of Air-India and Indian Airlines, he made it clear that the first priority would be to strengthen the two airlines, and allow them to grow.

"The last time IA bought a plane was in 1989. A-I's last purchase was in 1992," he said.

While private players have expanded their fleets and capacities over the years, IA and AI, he said, were not allowed to grow.

The thrust would, therefore, be on strengthening them, and making them healthy.

On the impact of the rising cost of ATF, he said, this was a crucial issue. The international cost of ATF currently stood at $42 per barrel. Six months to a year back, it was just $25. The impact of the price rise was being felt by all the airlines, in the private and public sector.

He added that he had raised the issue of the high cost of ATF with the Finance Minister on Friday. The latter had assured him that the Government would consider the issue sympathetically and work out something.