Talks of zero-regulation international aviation in air

New Delhi: In a move that could set the ball rolling for further opening up of the aviation sector, civil aviation authorities from across the globe are meeting in Istanbul in October to discuss the modalities of a zero regulatory regime. Some of the key areas to be discussed during this ‘freedom summit’ are liberalising the norms for foreign direct investment (FDI), simplifying cross-border consolidation in the sector and doing away with bilateral aviation service agreements.
The meeting to be held under the banner of International Air transportation Association (IATA) is expected to stress on free market access for airlines and simpler rules for change on ownership.
“The idea has been put forward by the global industry body. They have talked of complete freedom from regulations and restrictions for airlines. But it has to be seen as to how the stakeholders react to it. In the past, some airlines asked for relaxing the rules and guidelines, some particularly bigger airlines want them to stay,” an official in the ministry of civil aviation said.
The trade body argues as there are no restrictions in other sectors such as telecom and automobiles enabling them access to global capital, airlines should also be given similar treatment. This would, they claim, eliminate the crisis being faced by the carriers across the world due to high fuel prices. Most countries, including the US, have restrictions on foreign ownership of airline. In India, foreign investment in airlines is permitted up to 49%, but foreign airlines are forbidden.
25/08/08 Nirbhay Kumar/Economic Times

To Read the News in full at Source, Click the Headline

Categories: Foreign Aug 2008, Indian Aviation- In General Aug 2008