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Panel seeks clarification on AI-IA disinvestment

By Our Special Correspondent

NEW DELHI NOV. 14. Members of the Parliamentary Consultative Committee attached to the Ministry of Civil Aviation today demanded a clear-cut policy on disinvestment of Air India and Indian Airlines so that both could take up fleet expansion programme. Lack of clarity on the issue had affected the fleet expansion programme, they said. While demanding that both airlines expand their fleet, they said the process should be made transparent.

Expressing concern over the hike in the price of Air Turbine Fuel (ATF), which is affecting the bottom line of the two carriers, they urged the Minister to take up the matter with the Finance Ministry to bring down the excise duty.

Addressing the meeting, the Minister for Civil Aviation, Shahnawaz Hussain, said Air India and Indian Airlines had recently finalised a hub-and-spoke arrangement between them. This will enable Air India to utilise Indian Airlines aircraft, which are more suitable for connecting different domestic stations to the international flights of Air India from Delhi and Mumbai.

He said this would help Air India deploy its own A-310 aircraft profitably on other routes for which these bigger aircraft are more suitable. The Minister said that a route rationalisation exercise had been undertaken so that both airlines gave good competition to foreign airlines instead of competing with each other.

The Minister said that despite the setback suffered after the September 11, 2001 events, Air India notched a profit of Rs.46.79 crores during the first half of this financial year. The company had earned a profit of Rs. 15.44 crores during 2001-2002. Similarly, Pawan Hans helicopters earned a profit of Rs. 62.18 crores in the last fiscal. It has entered into a memorandum of understanding with two international helicopter operators. He said a new programme was on the anvil for upgrading the terminal buildings at some of the important non-metro airports to international standards with the use of latest designs and material.

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