Airlines' global plans to face closer scrutiny

The Ministry of Civil Aviation is looking at granting permission to domestic airlines wanting to go international on a "case-by-case" basis.

"The issue would be reviewed on the basis of the need of the sector and the ability of the carrier to be able to serve international routes. It would be taken up along with the issue of allowing other Indian international airlines to fly on the lucrative Gulf routes," Civil Aviation Minister Praful Patel told reporters today.

At present, an airline has to be in operation for five years to go international. However, the ministry is looking at relaxing this norm.

It is also reviewing its policy of not allowing private airlines on Gulf routes, which are reserved for state-owned airline companies.

Concerned over rising prices of aviation turbine fuel (ATF), Patel said the issue was being reviewed and steps would be taken shortly.

"The PSUs will be directed to reduce prices. If they do not see reason, we will have to go for alternative options," he said, without specifying what those options would be.

He, however, said that private players were welcome to the sector. "Once private players come in, there will be more competition, leading to a reduction in prices, which will be beneficial to airlines," he added.

The minister said these issues would be included in the civil aviation policy, which he dubbed as the "Vision 2020". The issues would be taken up later this month.

The minister said the new airline after the merger of Indian and Air India would come into existence on July 15. The merged airline would be called Air-India.

He said that issues like route rationalisation were being seriously discussed in meetings. "Just to cite an example, rationalisation just in the India-Kuwait route would mean a profit of Rs 80 crore," said Patel.

The director general of civil aviation (DGCA) has been asked to probe of the frequent technical snags in Air India aircraft. The report on the investigations is expected in the next few months.

The ministry is also planning to double the fleet size of Pawan Hans. It would acquire more sea choppers to meet the operational requirements of Oil and Natural Gas Corporation, the largest customer of the airline.