The Hindu Business Line : Civil Aviation Ministry looks at steps to control sickness

CUTTING LOSSES: (from left) The Minister for Civil Aviation, Mr Praful Patel, with the Secretary, Mr Ajay Prasad, the Chairman of Kingfisher Airlines, Mr Vijay Mallya, and the Chairman of Jet Airways, Mr Naresh Goyal, during a meeting with Chief Executive Officers of various domestic airlines, in the Capital on Thursday. — Ramesh Sharma

New Delhi , Sept. 28

With losses in the domestic aviation industry mounting, the Ministry of Civil Aviation is looking at a host of initiatives such as closer scrutiny of the business plan of companies wanting to enter the sector, possible financial audits every quarter apart from impressing on the oil companies to pass on the benefit of decline in aviation turbine fuel prices to the passengers.

Briefing newspersons after a three-hour long meeting with the Chief Executive Officers of the leading domestic airlines, the Minister for Civil Aviation, Mr Praful Patel, was categorical in stating that the Government was not putting a freeze on issuing any fresh airline licences.

"At the moment, there is no move to change the existing criteria for any one to start a new airline. There is no major or substantive application for start of an airline that is pending with the Government," Mr Patel said.

To further mitigate the problems faced by the industry, Mr Patel planned to meet the Ministers of Finance and Petroleum and Natural Gas apart from the State Governments to get relief for the domestic airlines.

"The prices of ATF have declined by 15-16 per cent in the past few months. However, there has been no relief for either the passenger or the airlines. I plan to meet the Minister for Petroleum for this. Besides, the issue of getting exemption for a longer period on withholding tax being imposed on lease of aircraft and engines will be taken up with the Finance Minister," Mr Patel said.

The Minister, however, refused to quantify the losses that the domestic airline sector had incurred in the recent past.

Domestic airfares

Questioned on whether the Government planned to regulate domestic airfares, Mr Patel replied in the negative. "But we do not want the sector to go sick as this would affect passengers and the economy. We do not want a situation as existed in 1991."

The meeting was attended by the Chairman, Jet Airways, Mr Naresh Goyal, the President and Chief Executive Officer, Indigo, Mr Bruce Ashby, the President, Air Sahara, Mr Alok Sharma, the Chairman and Managing Director, Air India, Mr V. Thulasidas, the Chairman and Managing Director, Indian, Dr Vishwapati Trivedi, and the Managing Director, Air Deccan, Captain C.R. Gopinath, among others.