Financial Daily from THE HINDU group of publications
Thursday, Jul 07, 2005
Financial Daily from THE HINDU group of publications Thursday, Jul 07, 2005 |
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Policy Logistics - Airlines No stake for foreign airlines in domestic carriers: Govt Policy to specify norms for ground handling Our Bureau
New Delhi , July 6 DESPITE pressures for a re-think, the Government is firm in its resolve of not allowing foreign airlines to pick up a stake in domestic airlines. Official sources told Business Line that the new civil aviation policy, to be announced by the end of the month, would not allow foreign airlines to pick up a stake in domestic airlines. The Planning Commission, in its mid-term appraisal of the Tenth Five-Year Plan, had suggested a review of the current rules that debar foreign airlines from picking up an equity stake in domestic air transport operations. The Government earlier allowed foreign airlines to pick up a stake in domestic airlines. However, the policy was reversed in 1996 and some foreign airlines, including Kuwait Airways, which had a share in Jet Airways, sold their stake. Official sources said that the Ministry of Civil Aviation is not in favour of allowing foreign airline into the domestic aviation sector at the moment. The new policy will not only specify the norms for more players wanting to enter the domestic airline sector, but also lay down the guidelines for companies wanting to take up ground handling activities at the airports. "There is no thinking either this way or that on raising entry norms in the domestic aviation sector. The policy will reflect the thinking of the Government on this issue. The policy will also reflect the new thinking on ground handling in view of changing situation and restructuring of the two metro airports," officials said. Currently, the Airports Authority of India, Indian Airlines and Air India are among the agencies that are allowed to carry out ground-handling services. After having received comments from 12 Ministries on the draft policy, the Ministry of Civil Aviation is now working on giving a final shape to the new policy.
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