Aviation policy draft ready for Cabinet

BY A CORRESPONDENT
April 6, 2006

The blueprint of the much-awaited civil aviation policy that will transform the existing civil aviation industry is set to be presented to the Union Cabinet. The Union Civil Aviation Ministry has finished preparing the draft policy paper, and a final decision is expected from the Cabinet.

The recommendations come from a high-power panel set up to formulate standards for India's civil aviation industry. It is headed by former civil aviation secretary MK Kaw.

The draft is expected to cover all aspects of the industry, from aircraft maintenance to pilot inspection and the improvement of safety and standards. According to Kaw, "The committee will cover everything from airworthiness of aircraft, operations and scheduling to licensing of personnel, airports and air traffic control."

The Kaw committee was set up last year in August and is geared towards updating Indian laws and policies to enable the Indian aviation industry to match global standards. India is quickly emerging as a leading player in the global aviation industry, with a growth rate of 25 per cent.

The report is also expected to focus on the growth of regional airlines in the country, to enable greater connectivity between smaller towns. Another priority issue in the draft is likely to be the merger of the two state owned airlines, Indian Airlines and Air India.

In addition, some fireworks are likely to take place, between the Civil Aviation Ministry and the Finance Ministry, over the issue of FDI, with the former wanting to keep the FDI cap at the existing 40 per cent on private airlines.