One-day window left for open skies but Cabinet shows no mood to fly

The Civil Aviation Ministry asked for a mile in its draft policy, then slipped in a request for an inch, both last minute, and at the end of...

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The Civil Aviation Ministry asked for a mile in its draft policy, then slipped in a request for an inch, both last minute, and at the end of the day, got neither from the Cabinet.

For the record, the reason was ‘‘paucity of time,’’ but sources said a section of the Cabinet opposed the reforms proposals citing a range of reasons: from security to the lack of a ‘‘comprehensive policy.’’

The only comfort Civil Aviation Minister Rajiv Pratap Rudy can seek is the fact that there’s still a day’s window remaining for the Government—the Lok Sabha is dissolved on Friday.

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As The Indian Express reported today, civil aviation reforms wasn’t on the agenda listed last night but this morning, the Civil Aviation Ministry moved a two-point package: One, let private domestic airlines operate abroad—barring the Gulf—during the peak-rush winter (December to February) for the next three years.

And, two, a broad policy framework addressing the privatisation of existing international airports and the need for more greenfield airports in the future.

But neither proposal was taken up by the Cabinet, the official reason being ‘‘paucity of time.’’ Said Rudy: ‘‘The meeting was inconclusive because we all had to be in the house.’’ Asked if there could be a next meeting, he said: ‘‘It is for the Cabinet Secretariat to call it.’’

What complicated matters and, according to sources, became one of the reasons for the stalling was the ‘‘draft civil aviation policy’’ which was circulated the night before the meeting.

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On the issue of private airlines to fly overseas, this draft policy was at variance with what the Ministry had said in today’s Cabinet note. For instance, the draft makes no mention of it being restricted to winter months and neither does it omit a particular region of the world like the Gulf.

	How they disposed

			• Security issue: If it was valid for telecom, why not for airlines? • Reforms shouldn’t be piecemeal: note for Cabinet talks of pvt operators going overseas but makes no mention of FDI. • No inputs on financial implications for national carriers. • Don’t rush without waiting for comments of all ministries and agencies concerned.

The salient features of the policy:

• 100 per cent foreign direct investment routed through the Foreign Investment Promotion Board for non-scheduled domestic operators. It, however, bars foreign airlines to participate either directly or indirectly in such a venture.

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• Government commitment to ensure that air bilaterals are utilised to the maximum extent.

• Need for setting a minimum criteria for any airline to qualify as an Indian carrier but no specifics mentioned. Those airlines which qualify will, thus, be considered for international operations during bilateral negotiations.

• Subsidising Indian Airlines for flying on uneconomical routes through a process of ‘‘minimum subsidy bidding’’