The Hindu Business Line : AI likely to become listed co; may divest equity to public

While there is a five per cent decline in the number of passengers flown by the domestic airlines in 2008, compared to the previous year, domestic cargo movement sees a growth of 14.5 per cent.

Our Bureau

New Delhi, July 2

The Economic Survey 2008-09, tabled in Parliament on Thursday, could pave the way for Air India to not only become a listed company but also divest some of its equity to the public.

The Survey calls for listing all unlisted public sector enterprises and sell a minimum of 5-10 per cent equity to the public.

At the moment, Air India is an unlisted public sector enterprise.

The Survey also shows that while there was a five per cent decline in the number of passengers flown by the domestic airlines in 2008 compared to the previous year, domestic cargo movement saw a growth of 14.5 per cent.

The Directorate General of Civil Aviation data show that the airlines flew 40.77 million passengers in 2008 (42.85 million).

Modernisation plans

The Survey also outlines the plans for modernisation of Chennai airport which was approved by the Government in August last year at an estimated cost of Rs 1,808 crore.

The proposal includes construction of a domestic terminal, extension of the existing Anna International Terminal, extension of secondary runway across the Adyar River and construction of parallel taxi-track and parking bays.

The modernisation is to be completed by next year-end, the Survey adds.

MRO facility

The joint venture agreement for creation of a maintenance, repair and overhaul centre for Airbus aircraft is expected to start operations this year, the Survey states.

The MRO is being set up jointly by National Aviation Company of India Ltd (NACIL) and European Aeronautic Defence and Space Company (EADS).

The total project cost is estimated to be $40 million spread over five years.

During 2008, the country exchanged air services bilateral with a number of countries, a move which saw 1,05,298 additional seats-a-week being granted to the designated airlines of foreign countries on reciprocal basis to operate flights to and from here.

Besides, to open new city connections within the country for international carriers, 26 new points of call in India have been granted to the designated airlines of 16 countries in 2008, the Survey adds.

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