The Indian government has decided to throw open international routes for domestic private airlines to make the aviation sector in the country financially stronger, said Union civil aviation minister Ajit Singh.
Addressing a press conference after inaugurating the third edition of the biennial India Aviation 2012 here on Wednesday, Mr Singh said the civil aviation ministry had taken a number of measures to strengthen the aviation sector and protect domestic private airlines from losses. Among these measures was permission to private airlines to directly import aviation turbine fuel and access foreign direct investment in the domestic sector. Mr Singh said the government’s decision to increase international traffic rights would help private domestic airlines to make up some of their losses.
“International routes are profitable and permitting domestic airlines on international routes will help them make profits,” he said, adding that between 500 and 600 new international flights will be added soon. The new destinations include Hanoi, Ethiopia, Egypt and Uzbekistan. The focus would be more on Africa and Australia.
Referring to the bailout package for the national carrier, Air India, Mr Singh said the Union Cabinet is likely to take a decision later this week. A bailout package of Rs 6,500 crore has been worked out to help Air India come out of the red. The reconstruction package, he said, included final permission to buy Boeing’s fuel-efficient Dreamliner aircraft and conversion of a part of its short-term loans to long-term loans.
“We will bail Air India out, but not indefinitely. It has to improve its efficiency,” he warned.
In reply to a question, the minister said the Centre was very much interested in setting up an aviation university in the country. “We are keen on setting up world class training and education infrastructure for the aviation industry,” he observed.