The Hindu : Conditional offer to reduce air fares

Online edition of India's National Newspaper
Tuesday, Jan 21, 2003

Southern States

Southern States - Kerala

Conditional offer to reduce air fares

By Our Staff Reporter

THIRUVANANTHAPURAM Jan. 20. The Union Minister of State for Civil Aviation, Shripad Y. Naik, has said the Central Government is ready to reduce the air fare from Kerala to various Gulf destinations if the State Government reduces the Sales Tax on Aviation Turbine Fuel (ATF).

Addressing a press conference after inaugurating a national conference of the Airports Authority of India Officers Association here today, Mr. Naik pointed out that Andhra Pradesh had reduced the Sales Tax from 39 per cent to 4 per cent and the Northeastern States also had brought it down to 4 per cent. The Goa Government has already taken a decision in this regard. ``I appeal to the Government and the Chief Minister, A.K. Antony, in particular to reduce the Sales Tax so that we could offer cheap rates to the passengers travelling to the Gulf countries,'' he said.

Regarding the proposed privatisation of four metro airports in the country, Mr. Naik said it would be joint venture projects as the State Government did not have the adequate finance to invest in developing the airports into world class ones.

``Many have evinced interest in the four metro airports. Although it will be a joint venture, the overall control and security of the airports will be with the Airports Authority of India (AAI),'' he said.

He said the Civil Aviation Ministry had asked the Government to clear the proposals to acquire more aircraft for Air India and Indian Airlines to make them profitable and to provide better service to the passengers. After seven years, Air India has registered a profit of Rs. 16 crores in 2001-02. The national carrier has also recorded a profit of Rs. 46 crores for the last half year.

The Government will provide permission to interested foreign airlines to operate flights to different airports in the country once the bilateral agreement is over. The Government will adopt an open sky policy in the development of other airports, he said.

New terminal project: Stating that the AAI was not neglecting the Thiruvananthapuram international airport, the Minister said the AAI was ready to complete the new terminal for the airport on the Chakkai side in one-and-a-half years once the land was handed over by the State Government.

``We have been told by the State Government that the initial 27 acres of land will be handed over in the next two months. The project needs another 130 acres. The plan for the modern terminal project is ready and the finance is available. Without making available the land, we cannot move ahead,'' he said.

To a query on the proposed airport at Kannur, he said the proposal was pending with the Civil Aviation Ministry. The AAI is carrying out a techno-economic feasibility study and a decision will be taken after the Ministry gets the report, Mr. Naik said.

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