The Hindu Business Line : Stock options on cards for AI, Indian staff

Unlimited potential: The Minister for Civil Aviation, Mr Praful Patel, and the Managing Director of Tata Steel, Mr B. Muthuraman, at the AIMA-AAMO 34th National Management Convention in Kolkata on Friday.

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Kolkata, Sept. 7 The Ministry of Civil Aviation expects the aviation industry to attract investment of $120-150 billion over the next 10 years in hardware, infrastructure and other segments, according to Mr Praful Patel, Union Minister for Civil Aviation.

“There is a potential for unlimited growth. It is envisaged that the aviation industry will attract investment of $120-150 billion over the next 10 years and have more than 1,000 aircraft in the next five years. Nearly three million jobs will be created in the next 10 years,” Mr Patel told reporters on the sidelines of the 34th National Management Convention organised by the All India Management Association (AIMA) here today. Currently, there are about 350 aircraft in India.

“The new civil aviation policy will look to expand the regulatory framework beyond airports to other aspects and would be an enabling document for meeting the Vision 2020,” he added.

On IPO plans of the Air India-Indian merged entity, Mr Patel said: “It will take another six months to one year. In between there is a plan to offer ESOPs (Employee Stock Option Plan) to the 33,000 employees of the merged entity.” He also maintained that the Government has offered no tax sops in the Air India-Indian merger process.

The Ministry of Civil Aviation also favours relaxation of regulations to allow Indian carriers with less than five years’ domestic flight operation experience to fly overseas in a bid to increase share of Indian carriers in inbound and outbound air traffic. The Inter Ministerial Group (IMG) is currently looking into this issue.

More Stories on : Airlines | IPOs | ESOPs

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