Union Minister for Civial Aviation Ajit Singh today said the government is considering to allow private airlines on International routes. Addressing a press conferenc here, he said in view of increasing demand at International routes over 500-600 new international flights will be opened to private carriers this year to eliminate some of their financial problems as International rotues are more profitable. Air India has only been able to use 30-35 per cent of the total bilateral traffic rights available with India, he said this year it will go up to 40 per cent, Allowing private airlines to participate in foreign direct investment (FDI), he said that the concerned Minstry was looking into it.
While referring to increase jet fuel prices, he said aviation turbine fuel (ATF) is 20 to 25 per cent of the operation cost worldwide and it is 40 per cent in India due to high taxes by the states, he pointed out.
‘We are allowing airlines to import ATF directly and this will take some time as the infrastructure for ATF at the airports is handled by oil companies and the issue was being pursuing with the oil companies, he said. To a question, Mr Singh strongly stated that the government would not bail out any private airlines.
‘We will bail out only Air India because it is a government concern, he said and added the ministry would move financial restructuring package for Air India and likely to take decision on it by the cabinet this week. The government will infuse Rs 6,500 crore into the state carrier, he said final permission would also be taken in the cabinet for the purchase of Boeing 787 Dreamliners.
When asked about the compensation Air India is seeking from Boeing for the delay in delivery of Dreamliners, the Minister said it was under negotiation.
The first Dreamliner was supposed to be inducted in 2008 but is now likely to happen in April or May, he said, adding the delay had caused problems to Air India. UNI