'Weighing pros & cons of allowing airport operators to run airline:' Naidu
NEW DELHI: Govt is weighing the pros and cons of allowing Adani Group, which operates Mumbai airport, to run an airline. The Delhi and Mumbai airports went the PPP way in 2006 and their “operation, management and development agreement” (OMDA) does not allow the operators to have beyond 10% stake in an airline. Recently the Adani Group had sought amendment to the same.
“Govt is clear that India needs more airlines, given the number of airports going to come up in India and the demand. Our ambition is to have at least five airlines with at least 100 aircraft each. So if someone wants to start an airline, govt supports the idea. The issue is an airport (Mumbai and Delhi) doing so. We are examining the pros and cons of the same,” Union aviation minister Ram Mohan Naidu said here Tuesday.
Naidu said no decision on the Adani request has been taken so far. “We need to create a system where the cons (of allowing such a move) are taken care of. Pros we know. As such in govt there is no clause or rule anywhere which stops airport operators from having airlines other than the OMDA agreement for Delhi and Mumbai. If let us say BIAL (Bengaluru operator), which is still a private operator, wants to operate an airline, there is no rule stopping him. That’s why we have to take a balanced approach,” said Naidu.
Adani’s request has divided the airline industry with IndiGo promoter Rahul Bhatia opposing the move and Akasa founder Vinay Dube being in favour of the same.
The minister spoke about other issues at an UDAN event here Tuesday. “The aviation ministry, Airports Authority of India and 21 States & UTs (have) come together and sign MoUs to put a greater focus on speed, sustainability and long-term viability of projects in the next phase of UDAN… 100 airports will be developed under challenge mode over the next 10 years,” Naidu said.
SpiceJet:
The cash-strapped airline’s woes have been mounting and its passengers often suffer delays running in several hours. “We are closely monitoring SpiceJet’s operations and finances through the aviation regulatory body to ensure safety is not compromised. Operational and financial scrutiny is being done. SpiceJet got Rs 150 crore under ECLGS. Getting more funds is something the airline has to work with banks with. It is a private airline. Our priority is to ensure passengers don’t face inconvenience and that safety is not compromised,” Naidu said.
Dope test on pilots:
“The intention of the ministry is that all pilots must get tested within a year. The framework for the same has to be issued by the regulator DGCA. We have given our intent to them and they are holding deliberation with stakeholders. The DGCA rule change to ensure this is expected,” said the minister.
No fare caps this festive season:
Airfares will not be capped this festive season and the aviation ministry will advise airlines to keep the same at reasonable levels, said the minister. The hike being seen in recent dues is not due to the spike in demand but due to increased jet fuel prices.
“We engage with airlines continuously and have regular meetings with them. And we definitely point it out to them that during this festive season, you have to ensure that the fair prices are kept at a reasonable level so that the people who want to travel, especially in these important times, get to see the benefit,” the minister said.
“Govt is clear that India needs more airlines, given the number of airports going to come up in India and the demand. Our ambition is to have at least five airlines with at least 100 aircraft each. So if someone wants to start an airline, govt supports the idea. The issue is an airport (Mumbai and Delhi) doing so. We are examining the pros and cons of the same,” Union aviation minister Ram Mohan Naidu said here Tuesday.
Naidu said no decision on the Adani request has been taken so far. “We need to create a system where the cons (of allowing such a move) are taken care of. Pros we know. As such in govt there is no clause or rule anywhere which stops airport operators from having airlines other than the OMDA agreement for Delhi and Mumbai. If let us say BIAL (Bengaluru operator), which is still a private operator, wants to operate an airline, there is no rule stopping him. That’s why we have to take a balanced approach,” said Naidu.
Adani’s request has divided the airline industry with IndiGo promoter Rahul Bhatia opposing the move and Akasa founder Vinay Dube being in favour of the same.
The minister spoke about other issues at an UDAN event here Tuesday. “The aviation ministry, Airports Authority of India and 21 States & UTs (have) come together and sign MoUs to put a greater focus on speed, sustainability and long-term viability of projects in the next phase of UDAN… 100 airports will be developed under challenge mode over the next 10 years,” Naidu said.
SpiceJet:
The cash-strapped airline’s woes have been mounting and its passengers often suffer delays running in several hours. “We are closely monitoring SpiceJet’s operations and finances through the aviation regulatory body to ensure safety is not compromised. Operational and financial scrutiny is being done. SpiceJet got Rs 150 crore under ECLGS. Getting more funds is something the airline has to work with banks with. It is a private airline. Our priority is to ensure passengers don’t face inconvenience and that safety is not compromised,” Naidu said.
Dope test on pilots:
“The intention of the ministry is that all pilots must get tested within a year. The framework for the same has to be issued by the regulator DGCA. We have given our intent to them and they are holding deliberation with stakeholders. The DGCA rule change to ensure this is expected,” said the minister.
No fare caps this festive season:
Airfares will not be capped this festive season and the aviation ministry will advise airlines to keep the same at reasonable levels, said the minister. The hike being seen in recent dues is not due to the spike in demand but due to increased jet fuel prices.
“We engage with airlines continuously and have regular meetings with them. And we definitely point it out to them that during this festive season, you have to ensure that the fair prices are kept at a reasonable level so that the people who want to travel, especially in these important times, get to see the benefit,” the minister said.
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