Thursday, December 27, 2007

Patel to meet FM over aviation issues

New Delhi: With train fares likely to drop further this year, thanks to healthy finances, the aviation ministry has swung into action to save the loss-making airlines. Aviation minister Praful Patel told TOI on Wednesday that he would soon be meeting FM P Chidambaram to raise issues hitting the industry.
"It's high time that aviation turbine fuel prices were checked. There are issues of duties and taxes. Aviation is no longer the preserve of the rich as the common man has taken to the skies like never before and this industry also needs support," Patel said. According to industry estimates, this financial year's collective loss of all Indian carriers could be higher than last year's figure of $500 million.
Meanwhile, the ministry is all set to pursue its plan of changing the old rule of allowing only five-year-old airlines with a minimum fleet of 20 aircraft to fly abroad. The group of ministers headed by senior Congress leader Pranab Mukherjee to discuss the new aviation policy, that includes this aspect, will meet next Thursday.
The Cabinet had sharp division over this issue as some senior ministers like Lalu Prasad Yadav and H R Bhardwaj are learnt to be opposing any change, while Chidambaram and Patel are backing new rules.
27/12/07 Saurabh Sinha/Times of India
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