In the absence of a national aviation policy, the government has been taking ad hoc decisions from time to time to address the concerns of the aviation sector. Being ad hoc in character, several decisions taken to respond to a particular crisis have often led to the creation of other problems for the industry. This should, however, not come as a surprise to anyone because the ministry of civil aviation, managed by bureaucrats, besides lacking the vision for the industry, does not have the requisite experience and understanding of the sector. If proof were needed to prove this point, one has only to see how the national carrier, Air India, has been systematically harmed through numerous decisions.
A policy decision relating to foreign direct investment (FDI) by foreign airlines in domestic airlines, taken in September 2012, was welcomed by all, even though it came too late for Kingfisher Airlines, the airline that had originally mooted the demand. With the finances of most domestic airlines in disarray, debt on the balance sheet mounting, losses being incurred quarter after quarter, and banks refusing to extend any more loans, investment by foreign airlines was considered imperative for survival.
25/04/13 Jitender Bhargava/Business Standard
