New aviation policy by year-end: Praful Patel

The new civil aviation policy, Vision 2020, will be notified by the government by the end of this year, Union Minister of Civil Aviation Praful Patel said today.

"The Cabinet will meet on November 1, and discuss the Vision 2020 among other things. I expect the policy to be notified by the year-end," Patel said on the sidelines of an insurance conference here.

Regarding the rise in crude oil prices, Patel said, "I am certainly worried about the high oil prices. I have already spoken to the oil ministry (regarding its spill-over on jet fuel prices) and will again have a discussion with them."

He did not disclose when the next meeting with the oil ministry would take place.

High fuel price is one of the main reasons for the extensive losses incurred by aviation companies. Fuel costs account for nearly 40 per cent of airlines' operational expenses.

State-run oil companies are expected to announce a hike in aviation turbine fuel prices on November 1. Airlines are already bracing themselves for this hike, and have decided to raise the fuel surcharge on air tickets by the same amount.

On Tuesday, Kingfisher Airlines and Jet Airways announced their plan to hike fares after November 1.