Aviation industry expects Budget to tackle crisis

New Delhi: With the budget-making exercise having started, the Indian aviation industry, reeling under losses, is expecting the government to come up with measures to soften the impact of the global meltdown and that of the crude prices which have starte d rising once again.
While national carrier Air India is making plans to get additional equity infusion and a soft loan, mini-ratna Airports Authority of India is also expecting a nod to allow it to raise funds from the market through infrastructure bonds.
The airline industry wants the government to grant 'Declared Goods' status to aviation turbine fuel (ATF) as the fuel prices are again showing rising trend.
On Air India, the Civil Aviation Minister, Mr Praful Patel has said the government would be considering infusion of equity and a soft loan to strengthen the national carrier.
He has also gone on record to say that if the markets were stable, the Government could even consider allowing it to issue an Initial Public Offer to raise funds from the market without diluting its public sector status.
The serious situation facing the aviation industry, not only in India but globally, has given rise to expectations that certain steps would be taken by the UPA government in this direction, industry sources said.
14/06/09 PTI/Business Line

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Categories: Indian Aviation- In General Jun 2009