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Aviation
News
IA
announces 10 pc fare hike
New
Delhi: Indian Airlines (IA) announced a ten per
cent hike on Wednesday on all domestic sectors with
effect from June 21. The airlines cited the increase
in prices of Aviation Turbine Fuel (ATF). An IA spokesman
said the increased fares will not be applicable to
confirmed tickets booked before June 21. However,
any open ticket or a new booking after June 21 will
be charged as per the new tariff, he added. The hike
in passenger fares would be across the board, which
includes apex fare and promotional schemes. Jet Airways,
Air Sahara and Air Deccan have already announced hike
in their fares by 10 per cent. The increase was necessitated
due to the spurt in global crude prices that has added
Rs 200 crore to Indian Airlines' fuel cost, more than
the budgeted estimate for 2004-05 fiscal. The ATF
price has shot up from Rs 21,530 per kilolitre (KL)
in March this year to Rs 26,000 this month, IA sources
said.
June 16, 2004
We'll
review plane purchase deal: Praful (Go
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New
Delhi: The government will re-examine plans by
state-run Indian Airlines and Air-India to buy new
aircraft, Civil Aviation Minister Praful Patel said
on Wednesday. "We want to have a fresh look at the
exercise. The global scenario has changed. The prices
have changed but no decision has been taken yet,"
Patel told a news conference. "We would like to complete
the acquisition in 2004." The boards of the largely
domestic Indian Airlines and international carrier
Air-India have approved plans to buy the aircraft
from Europe's Airbus, but the contract has not been
signed as they were awaiting government approval.
US-based Boeing, which Airbus overtook as the world's
top commercial plane maker in 2003, is still lobbying
for the orders, which are crucial to both companies
as they battle a global industry slump.
June 2, 2004
Privatisation
of airports can wait: Praful (Go
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New
Delhi: Civil aviation minister Praful Patel on
Wednesday allayed fears of the government's leftist
partners regarding privatisation of the country's
biggest airports at New Delhi and Mumbai. The Minister
told reporters that India needed to improve the state
of its shabby airports to present a better face to
the rest of the world. Patel said the privatisation
of the two profitable airports started by the previous
government would move ahead only after the issues
of security and labour were addressed.
"We want the airports to be improved and modernised
and are willing to take all the exercise needed for
it but at the same time we will give full weightage
to security at the airports and also keep in mind
the well-being of the people working there," Patel
told reporters after this meeting with the Communist
Party of India (CPI) general secretary A.B Bardhan
here. Preliminary bids to sell shares in the two airports
have been invited by June 4, but officials in the
ministry said they expected some delay in the process.
The government had earlier hoped to complete the process
by September, but this could be delayed by about a
month. Analysts have feared for India's privatisation
programme since Manmohan Singh and the Left parties,
whose support the coalition needs for a majority in
Parliament, have opposed the privatisation of profit-making
state companies.
A mellowed Bardhan, however, boosted investor sentiments
as he expressed support to the government's policies.
"Wherever there is need for big investments and expertise,
where it is valid we are not against it," he said.
The new government is planning to allow foreign investors
to pick up to 49 percent stake in the proposed joint
ventures. Of the remaining 51 percent , Airports Authority
of India (AAI) will hold 26 percent while the rest
can be held by either Indian companies or by financial
institutions.
Last
September, former Cabinet approved a plan to spin
off the New Delhi and Mumbai airports into companies
and sell 74 percent stakes in them to private firms.
Patel had earlier also stated he would also aim to
strengthen the country's two state-run carriers, Air-India
Ltd and Indian Airlines Ltd, and would work to put
forth a comprehensive civil aviation policy as early
as possible. The previous government had planned to
introduce a civil aviation policy within a month if
it was voted back to power to boost the aviation industry
and make air travel affordable to a large section
of the people. Air travel in India is expensive owing
to the high taxes on aviation fuel and several other
fiscal levies on the industry. The new aviation policy
was also expected to allow greater freedom to private
domestic airlines to fly on foreign routes, allow
greater foreign investment in local airlines, enhance
competition and aim to rapidly upgrade airport infrastructure.
June 2, 2004
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