Rule of five years of domestic flying and 20-plane fleet to allow Indian carriers to fly abroad would be reviwed
The Government on Monday came up with draft civil aviation policy as per which not only State run Airports Authority of India (AAI) and Pawan Hans Helicopters limited (PHHl) will be listed but also rule of five years of domestic flying and 20- aircraft-fleet to fly abroad will be reviewed
After the news of Government unveiling draft civil aviation policy, stocks of Jet Airways and Spicejet surged up to 7 per cent. While shares of Jet Airways advanced by 6.82 per cent to settle at Rs268.60, Spicejet surged 5.02 per cent to end at Rs15.68 on the BSE.
The policy also proposes to enhance regional air connectivity, develop six major metro airports as international hubs, create more airports through PPP mode, rationalise jet fuel cost, promote air cargo, MRO and helicopter operations and improve passenger facilitation. “If a policy existed (during UPA rule), it was opaque. We want to develop a transparent policy because opaqueness leads itself to allegations. This Government wants to work in a transparent manner,” said Civil Aviation Minister Ashok Gajapathi Raju while unveiling the draft civil aviation policy.
The draft has been opened for wider consultation with all stakeholders and Minister stated that he hoped to finalise and implement it by January next year.
Talking in detail about listing of AAI and Pawan Hans, Raju said that it would improve transparency and efficiency. “AAI will be corporatised, followed by listing in the stock exchanges in order to improve efficiency and transparency. listing of Pawan Hans would also be undertaken with the same objective,” he said. “Pawan Hans’ listing straightaway might make sense. For AAI also, that is possible,” he added.
But, as of now no time frame has been fixed for the listing of AAI and Pawan Hans or what percentage of Government holding would be divested in them.
When asked about privtisation of Air India, he said: “There was a suggestion made by certain sections. While some say privatisation is a solution, others say it should remain with the public sector. Another section says the airline should be managed professionally by professional bodies.” “Why should we close our optionsIJ let us take a conscious decision,” he opined.
When asked further about whether Air India could also be listed, he said: “If it could get listed, I would be the happiest person.” He also informed that an in-house Experts Committee would be set up soon to develop a future roadmap for Air India.
“It is in the country’s interest that it cruises smoothly. All these suggestions have emerged. We don’t want to open a pandora’s box. We will have to take a conscious decision as it is a delicate matter,” he said
Civil Aviation Ministry official, on condition of anonymity, said that any decision on stake sale or professional management would be taken only after the experts group gives its recommendations and then “we will see what is the best alternative or the best way forward.” On AAI and PHHl, he said it would be easier to list PHHl because it is already a registered company.
“It could take up to six months for listing PHHl. We will work with the Department of Disinvestment, as it is the nodal Ministry for divesting stake in PSUs. Mopping up funds is not the prime objective of the exercise in both the entities. It will also help bring about greater professionalism in the boards of the two entities,” the official said.
To questions on whether the rule of five years of domestic flying and 20-plane fleet to allow Indian carriers to fly abroad would be scrapped, the Minister indicated doing away with it, saying rules which check the growth of aviation would go. “To my mind, it doesn’t make sense ... We may throw the bathwater and keep the baby”. On high taxes on jet fuel, Raju said the Centre has been requesting States to lower the taxes as fuel costs are close to 40-45 per cent of an airline’s total operational cost.