Committee to examine financial crises of domestic airlines

New Delhi, July 9 (UNI) Prime Minister Manmohan Singh has approved the setting up of a high-level committee to examine various issues relating to the financial crises faced by domestic airlines.

This was communicated to the Civil Aviation Ministry by the Cabinet Secretariat today.

The committee, to he headed by the Cabinet Secretary, will have the Finance Secretary, the Civil Aviation Secretary, the Revenue Secretary, the Petroleum Secretary, the Planning Commission Secretary, HDFC Chairman Deepak Parekh and IIM Ahmedabad Professor Dr Raghuram as its members.

It will examine and assess the financial difficulties faced by airline operators, consider international scenario and practices followed by other countries and airlines, and make appropriate short-term as well as long-term recommendations for the sustained growth and health of the aviation industry.

The committee has been asked to submit its recommendations at the earliest possible.

The necessary action for setting up the committee will be taken by the Civil Aviation Ministry, and the report of the Committee will be sent to the PMO after finalisation, an official release here said.

Welcoming the decision, Civil Aviation Minister Praful Patel said: ''The committee has been formed pursuant to our meeting with the Prime Minister on one of the most important issues affecting the Civil Aviation Sector that has led to the slowdown in the growth sector and losses for the domestic airlines.'' UNI YJ RL BD1859