Govt unveils new package for aviation sector

The government today announced a series of policy initiatives in the civil aviation sector, including dismantling the monopoly of the public sector oil companies in the supply of aviation turbine fuel (ATF), opening more international routes to domestic private carriers, setting up of an aviation regulator and finalising the civil aviation policy by January 2005.

Also, the two state-run carriers, Indian Airlines and Air-India, would set up cargo airline operations soon.

This was announced today by Union Civil Aviation Minister Praful Patel at the India Economic Summit.

The civil aviation ministry wants the oil PSUs to rationalise ATF prices in line with international prices. The move comes at a time when the domestic carriers have hiked airfares twice "" by 10 per cent each time "" in less than three months.

Patel said the government would soon finalise the proposal to allow Indian private carriers to fly to more overseas locations. "We are gradually opening the routes to domestic carriers. In the near future there will be more routes," he said.

Patel also said the government will start negotiations with the US to open more bilateral air services between the two countries soon.

The government is also considering a proposal to build five green-filed airports in the country. The proposed airports are expected to come up in Goa, Navi Mumbai, Pune, Kannur and the multi-modal international aviation hub in Nagpur.

The government will soon start feasibility studies in these locations. This also forms a part of the government's strategy to improve the aviation infrastructure in the country.

He also said that the government expect the modernisation of the major metro airports to be completed by 2007-08.

Airports Authority of India (AAI) will be raising funds from the market using various instruments including bonds finance the modernisation plan.