GoM set up to review new aviation policy

The government today constituted a high powered group of ministers (GoM) headed by External Affairs Minister Pranab Mukherjee to which the proposed new civil aviation policy has been referred.

Other members of the GoM include the Union Civil Aviation Minister Praful Patel, Defence Minister A K Antony, Finance Minister P Chidambaram, Home Minister Shivraj Patil, Minister for Shipping Road Transport and Highways T R Baalu, Minister for Agriculture Sharad Pawar, Deputy Chairman of Planning Commission Montek Singh Ahluwalia, Railway Minister Laloo Prasad Yadav, Urban Development minister Jaipal Reddy, Law Minister H R Bharadwaj and Tourism Minister Ambika Soni.

The move comes after members of the Cabinet were unable to reach a consensus on the crucial aviation policy, christened "Vision 2020", which recommends far-reaching changes in the country's aviation sector, at its meeting on June 15.

The decision of the GoM is crucial for most domestic carriers like Air Deccan, Kingfisher, and Spicejet which have all stated that they would like to fly abroad.

The proposed policy mooted by Patel had suggested removing the controversial "five year clause" as a condition for allowing domestic airline companies to fly abroad.

Instead it had suggested that carriers would be given clearance on a "case by case basis" depending on their capabilities and capacity available in the sector concerned.

At the moment, only Jet Airways, JetLite, formerly Air Sahara, and Air-India can operate overseas and this has been a major issue for other airlines.

The Cabinet also discussed a move by the civil aviation ministry to advance the monopoly of Air-India and Indian Airlines on the Gulf routes, which expires at the end of 2007, and there was even a proposal to extend this to 2010.

The freeing of the Gulf route to competition could have a major impact on the bottomline of Air India -especially after the merger as it depends on this route for a large percentage of its revenues.

Other proposals included allowing 100 per cent foreign direct investment in merchant ports, a separate licence for regional carriers and the corporatisation of the air traffic control (ATC) and the Directorate General of Civil Aviation (DGCA).

In the June 15 cabinet meeting at least eight cabinet ministers opposed the policy, and Pranab Mukherjee is believed to have raised concerns over air traffic congestion and had suggested the impact of modernisation of the Delhi and Mumbai airports should be examined before clearing the new proposed policy.