The Hindu Business Line : AI, IA poised for triple digit growth: Minister

THE Minister for Civil Aviation, Mr Praful Patel, on Wednesday said that in the next three years, both Air India (AI) and Indian Airlines (IA) would be poised to achieve "triple digit" growth in terms of number of aircraft in their fleet and passengers being carried by the airlines.

Addressing the Economic Editors' conference here, Mr Patel said that during the 2004-07 period, both the state-owned airlines should see triple digit growth.

The IA plan for purchasing 43 Airbus aircraft at an estimated price of about Rs 9,475 crore has already been cleared by the Public Investment board (PIB), while the AI board is expected to meet shortly to finalise its fleet acquisition plan, the Minister said.

However, despite the urgent need in both AI and IA for new aircraft, the acquisition plans of the two airlines will not be taken up simultaneously, the Secretary of Civil Aviation, Mr Ajay Prasad, said. On the issue of whether IA will be allowed to open price negotiations with the lowest bidder before or after the clearance was given by the Cabinet Committee on Economic Affairs (CCEA), officials said that this was something on which a decision would be taken after discussions with the officials of other Ministries.

The Minister also said that AI and IA would remain state-owned airlines in the near future, although he refused to specify a time frame for any possible divestment of the airlines.

Outlining a broad picture of the state of the civil aviation sector, the Minister said that the Government would also undertake the development of 30 non-metro airports at an estimated cost of Rs 5,000-6,000 crore which would be raised through bonds and other instruments.

"By 2005, at least 10 airports will be off the ground and all of them would be developed into airports of international standards by 2007-08. The process to upgrade these airports will go on simultaneously with the restructuring of Delhi and Mumbai airports. The bidding process for the two metro airports is likely to be completed by March 31 next year," the Minister said and added that all airports should be "generation next" airports.