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Govt unveils draft aviation policy to spur growth

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Govt unveils draft aviation policy to spur growth

The Airports Authority of India (AAI) and chopper company Pawan Hans is proposed to be listed on stock exchanges while an “in-house” expert committee will chalk out “future roadmap” for ailing Air India, the draft Civil Aviation policy unveiled on Monday said.

The new draft policy, which came as Civil Aviation Minister Ashok Gajapathi Raju wanted a change from the “opaqueness” of the previous UPA regime, also envisages, six airports, including Delhi and Bengaluru, being developed as international hubs, rationalisation of jet fuel cost and improving regional connectivity among other things.

After quick consultation with stakeholders, the Ministry wants to put in place the policy in action by January next year. “If a policy existed, it was opaque. We want to develop a transparent policy.

If it is opaque, it leads to allegations. Regulations should be meaningful,” Civil Aviation Minister Ashok Gajapthi Raju said. The draft policy also envisages a review of the 5/20 rule, which allows an Indian airline to fly abroad only after they have flown domestic for five years and have a 20-aircraft fleet.

Institutional reforms Rooting for institutional reforms, the draft said AAI will be “corporatised, followed by listing in stock exchanges in order to improve efficiency and transparency”.

Listing of Pawan Hans would also be undertaken with the “same objective”, it said adding a mission mode project will be set up to ensure that organisations under Civil Aviation Ministry are “competitive in terms of efficiency and costs”.

“The Pawan hans is on a different footing. Pawan Hans listing straightaway might make sense (as it is a registered company). For AAI, it is also possible,” Raju said.

Though the minister said the listing could be done within six months, a top official said they have not set any timeframe or how much stake would be divested. An “in-house” expert group will be set up for Air India though the draft does not talk about privatisation.

When asked Raju said, “While some say privatisation is a solution, others say it should remain with the public sector. Another section says the airline should be managed professionally by professional bodies. Why should we close our options? Let us take a conscious decision.

” On whether Air India will be listed like AAI, he said, “If it get listed, I will be happy. Let us see how it emerges,” he said.

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