The government’s intentions on reforms in the aviation sector will be tested in the stand it finally takes on permitting the AirAsia-Tata joint venture to take off in Indian skies. The civil aviation ministry has to finally give the airline a licence to fly.
Union aviation minister Ajit Singh has been quoted earlier as saying that new licences would not be issued as there is a mismatch between demand and supply. This logic is skewed as the domestic airlines are still expanding.It is a well-known fact that some powerful existing players had scuttled the attempt by the Tatas to set up an airline way back in 1995. Ratan Tata had proposed to set up a joint venture with Singapore International Airlines. He gave up in disgust after two years and only last year in an interview indicated there were hidden forces that worked against his getting an airline licence.
23/02/13 Asian Age
