 "Domestic airlines seek easier regulations, industry status to aviation sector")
Airlines seek easier government regulations and infrastructure status to aviation sector which will enable carriers to raise long term debt with softer payment terms.
"The government should grant an infrastructure status to aviation sector. It is highly cost intensive business with a gestation period of 6-7 years. Giving infrastructure status will allow airlines to raise long term bonds or loan with 20 years maturity. Raising foreign loans will also become simpler," said S Venkat, director (finance) Air India today.
"The government should grant an infrastructure status to aviation sector. It is highly cost intensive business with a gestation period of 6-7 years. Giving infrastructure status will allow airlines to raise long term bonds or loan with 20 years maturity. Raising foreign loans will also become simpler," said S Venkat, director (finance) Air India today.
Venkat was speaking at a panel discussion at Centre for Asia Pacific Aviation India summit.
AirAsia India chief executive officer Mittu Chandilya said the civil aviation ministry should ease regulations, develop infrastructure and follow an open skies policy. "I am not saying about safety and security regulations but I do not see a reason for government to cap fares," Chandilya added.
The civil aviation ministry is examining a plan to cap domestic economy fares at Rs 20,000 following complaints of excessive last minute fares.