Govt working on measures to boost airlines industry

New Delhi: The Government may ask private airlines to present a viable business plan, so that they could extend a helping to cash-strapped and financially distressed operators.
The Government is said to be considering a slew of measures including allowing airlines to import aviation turbine fuel (ATF or jet fuel) and asking banks to provide credit on easier terms. A core group of secretaries, constituted after instructions from the Prime Minister, reviewed the present situation of the airline industry on Wednesday.
The move comes in the backdrop of five of the six private airlines approaching the Government for help in the last six-eight weeks. The help is likely to come with strings attached. Airlines could be asked to show what steps they are taking to improve fares, cut excess capacity and draw up a plan to ensure that loans, if made available, are secured. While the group is headed by the Civil Aviation Secretary, the Petroleum and Financial Services Secretaries are other key members.
Regarding jet fuel, official sources said that airlines could be given permission to import jet fuel subject to limit on quantity and infrastructure availability.
At present, rules say that jet fuel can be imported only by state trading enterprises or by those companies that have been granted rights for marketing of fuels by the Petroleum Ministry. In case direct import licence is granted, that can be done only through Indian Oil.
21/12/11 Shishir Sinha/Ashwini Phadnis/Business Line

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

Categories: Indian Aviation- In General Dec 2011