Saturday, September 30, 2006

Govt shouldn’t stop new airlines’ entry, says CAPA

Mumbai: The Centre for Asia Pacific Aviation on Friday said the entry of new airlines should not be stopped as this was not the time for fine tuning of policy for the sector. It said the industry needed to “make its own market mistakes in order to flourish”.
The statement from one of the leading body in aviation consultancy in the Asia Pacific region comes only a day after the civil aviation minister said issue of new licenses in the industry would have to undergo high scrutiny.
“I strongly believe that preventing new entries would be a recipe for disaster,” executive chairman of CAPA Peter Harbison said.
Most of the airlines have been registering heavy losses due to excess capacity addition and rise in the aviation turbine fuel prices.
Harbison said the potential of the sector had been far from achieved. He added that for the development of the sector, India should have a transparent competitive authority, progressive removal of access and ownership restrictions, accelerated capital investment for infrastructure and removal of tax red tape.
29/09/06 Financial Express
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