The Hindu Business Line : Minister seeks panel to review Air India fleet acquisition

THE Union Civil Aviation Minister, Mr Praful Patel, has written to the Prime Minister, Dr Manmohan Singh, requesting that either a Group of Ministers (GoM) or Committee of Secretaries (CoS) be set up to examine the Rs 30,000 crore fleet acquisition plan of Air-India (AI).

"The Prime Minister has already appointed an over sight committee headed by the former Comptroller and Auditor General of India, Mr Somaiah to look into the AI proposal. I have also requested that the PM consider setting up a GoM or CoS to look into this project. After all, this is a high value transaction and we should try and get the best possible price," Mr Patel told newspersons here, on Thursday.

Earlier, on the recommendations of the Finance Ministry, Mr Patel had requested the PM to set up either a GoM or CoS to look into the fleet acquisition plans of Indian Airlines.

The Minister said that there was "no views or indications" on whether the Government would simultaneously take a final decision on the aircraft acquisition plan of the two state owned airlines.

Meanwhile, the issue of whether the new low cost airline, Magic Air should be given the nod to start operations will have to be cleared by the Union Cabinet, the Minister said.

This follows a communication from the Department of Economic Affairs (DEA) that suggests that as a matter of "abundant caution" directions be sought from the Cabinet before giving clearance to Magic Air.

The airline is being promoted by a Person of Indian Origin (PIO).

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Kingfisher Airlines to have Hughes network

Minister seeks panel to review Air India fleet acquisition

AI, employees' unions reach accord on wages

Emirates to begin another Dubai-NY daily non-stop flight

HAL, Snecma sign pact for joint venture

Malaysian air cargo carrier Transmile begins MD-11 operations

Core's vehicle-tracking project launched in Delhi-Jaipur highway

Govt may allow import of tuna long-liners

Taneja Aerospace profit at Rs 81.63 lakhs

No let-up in movement of ore to steel plants

Wet track