Foreign airlines will not be allowed to invest in Indian carriers

New Delhi, Apr 22: The new civil aviation policy will not allow foreign airlines to own equity in Indian carriers, Civil Aviation Minister Praful Patel has said.

''Indian carriers must first attain critical size and mass. They must be in a position to grow first. Otherwise, they will just be gobbled up,'' he said in an interview to CNN-IBN television channel.

The present refusal to permit foreign airlines to acquire equity interest in Indian carriers is likely to be overturned in about five years, he added in the interview to be broadcast tomorrow night.

''We are not saying that government policy shall be sacrosanct, cast in stone, it will never happen. I think Indian carriers will definitely scale up to 1,000 aircraft in five years and that is the time they will have achieved a critical mass which will be healthy for them to invite anybody to participate.'' Mr Patel said the new civil aviation policy, which is due to be approved by the union cabinet in coming weeks, will spell out a roadmap for the next 10 to 20 years. It will reflect the critical change that has occurred in the way aviation is currently regarded in the country.

Aviation has never been considered a major investment sector, the minister said. ''It has not been considered as very important to the growth of the economy. It has been just a concept of elitist people travelling from point A to point B.''

Mr Patel also dismissed a letter written by President of the International Federation of Airline Pilots' Association to Prime Minister Manmohan Singh expressing concern about safety standards in Air India. They do not represent the International Civil Aviation Organisation or the Director General of Civil Aviation. ''This letter is a hoax, this person or this body is only acting on the behest of some disgruntled elements.'' Speaking about safety standards in Indian aviation, the minister said the issue is most paramount. ''If Air India is violating safety measures by even 0.01 per cent, I will be the first person to take the strictest action if I can get an authentic version of what is written is true.'' On the issue of merging Air India and Indian and plans for their initial public offerings (IPOs), the minister said he had obtained concurrence with the Left parties and the employees' unions.

The move will not lead to retrenchment or any job losses, he said adding the high staff-to-aircraft ration will automatically come down when new planes acquired by both airlines are brought into operation.

On modernisation and privatisation of Delhi and Mumbai airports, Mr Patel said the assets will be handed over to new joint venture companies by this month-end.

He also spiked suggestions that there may be strikes or disruptions by airport employees' unions when the GMR and GVK-led consortia start upgrading the country's busiest airport to world-class standards.

Mr Patel described himself as a great optimist. ''My optimism is based on sheer knowledge of what we are doing. I act as a businessman. I understand what is good for the aviation industry.''

UNI