Aviation Ministry takes up unfinished agenda

New Delhi:The Union Civil Aviation Ministry is all set to take up some of the unfinished agenda like setting up of the Airport Economic Regulatory Authority, rationalization of tax on aviation turbine fuel, etc.
"Time is not enough for reforms or for bigger work," well informed sources in the Civil Aviation Ministry told this website's newspaper.
However, Union Civil Aviation Minister Praful Patel is likely to ask the Committee, headed by Union Cabinet Secretary, to examine various issues relating to the financial crises faced by domestic airlines to hold a meeting in August first week. A significant issue that would be taken up by Patel is the rationalisation of tax on aviation turbine fuel.
It is also learnt that Air India has been asked to take harsh decisions, including reduction in flights, to cut down the mounting losses and reduce expenditure. "Air India will bring down the losses by Rs 1,000 crore. However, for the remaining part of this fiscal, the national carrier should achieve Rs 500 to Rs 600 crore," sources added.
But the government has no plans for retrenching employees. "The company does not have enough funds for voluntary retirement scheme if people are retrenched." Both the Civil Aviation Ministry along with Air India is working on a proposal on infusion of equity and soft loans for the national carrier.
It is learnt that Praful Patel has appraised Prime Minister Manmohan Singh and Finance Minister P Chidamabaram on the proposal.
24/07/08 Newindpress

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Categories: Indian Aviation- In General Jul 2008