Foreign equity in airlines would strengthen them: Andrew Miller

Mumbai, Sep 29 (UNI) The CEO of The Centre for Asia Pacific Aviation Andrew Miller said a change in the policy of the Union Government of allowing foreign equity in airlines in India would bring in investments and strengthen low cost carriers.

Mr Miller, who was here to attend the 3rd annual India and West Asia low cost airline symposium told UNI in a brief interaction that this facility will help the LCC and the growing aviation industry in India.

Mr Miller said mostly all the airlines are working on the same routes and that has a negative effect on the LCCs.

''The LCCs in India have not taken advice from the Western experienced people from aviation industry particularly in management and skilled area'', he said yesterday, adding this was one of the reasons for the LCCs not doing so well.

Asked about the possibility of air-linking all the districts of India, Mr Miller said it would require huge investments and returns would not be on par.

Efforts are essential for bringing aviation fares on par with air conditioned railway fares, he added.

In this situation the consolidation or merger of the LCCs would be the other option apart from allowing foreign equity, Mr Miller observed. The Jet-air Sahara deal was also an attempt in the same line, while now the other attempt of merging of Air India and Indian is going on.

Mr Miller had a word of praise for Air Deccan and Kingfisher airlines saying they were doing well in this sector.

''Infact the domestic aviation industry plays a vital role in increasing the GDP as well as tourism'', he explained.

Asked to compare Indian aviation market to the Chinese market, Mr Miller said ''China would be the winner in sprinter while India would win the marathon'.

Elaborating on his observation he said in the next 50 years China would have a aging population while India would have the young population ready to spend.

Minister of State for Civil Aviation, Praful Patel said the FDIs upto 49 per cent is allowed, but the possibility of allowing foreign airlines to have stakes in the Indian aviation sector is not possible in the near future.

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