The Hindu Business Line : Review of policy likely on domestic airlines flying abroad

The Government is likely to take a view on whether to dilute the norms for allowing domestic airlines to operate in the international skies next year after it receives a report of a high-powered committee, which would be set up to look at the issue.

"During the first half of next year, a detailed study will be conducted that would look at a variety of issues including the liberal air services bilaterals that have been negotiated, the increase in passenger traffic and ability of Indian carriers. It is only after the report has been received that a decision will be taken on whether a review is required or not," the Minister for Civil Aviation, Mr Praful Patel, told newspersons.

Eligibility factor

At present, a domestic carrier must have a fleet of 20 aircraft and have flown in the domestic skies for at least five years to be eligible to fly in the international skies. The guidelines allowed Air Sahara and Jet Airways to start international operations while sections of the industry including Kingfisher Airlines have come out strongly against the move.

"When we are allowed to fly from Delhi to Chennai why should we be stopped from operating to Colombo," the airline Chairman, Mr Vijay Mallya, has argued.

The Minister also indicated that he would soon be meeting with the Minister for Petroleum, Mr Murli Deora, to find a way of reducing the cost of aviation turbine fuel. "The base price of ATF is very high. The Petroleum Ministry should look into this because any reduction in base price will also offer some relief to the airlines."

Hedging on prices

Other issues such as hedging on prices of ATF and the need to bring about competition in sale of oil for airlines will also be discussed. The Ministry should look at all these issues in view of the health of the industry and high growth potential, Mr Patel said.

Commenting on the proposed merger of Indian and Air India, the Minister said that the Committee of Secretaries (CoS) looking into the issue had submitted its report and were in favour of the process going forward. "The CoS has endorsed the merger proposal. There are some issues connected with stamp duty and income tax that need to be looked at," the Minister added.

Meanwhile, the Ministry of Civil Aviation is to soon move a Cabinet note on the entities that would be allowed to take up ground handling activities at airports.