FICCI calls for new aviation policy

By Our Special Correspondent

NEW DELHI, APRIL 14. The Federation of Indian Chambers of Commerce and Industry (FICCI) has urged the Government to formulte a new aviation policy that ensures adequate returns to investors and makes air travel affordable along with a ``balanced'' aviation turbine fuel price policy.

The policy's aim should be to enable future capacity expansion through private sector involvement by offering viable financial solutions, notes the chamber in a paper prepared for a forthcoming international seminar on the subject.

The FICCI has suggested that private airlines should also be allowed to operate international air services so that the hard earned bilateral rights are optimally utilised. All airlines, whether public or private, must be permitted to exploit commercial opportunities offered by global alliances and code sharing frequent flier tie-ups. Further, the aviation policy must address the disparity in aviation turbine fuel (ATF) prices that exists in domestic and international sectors. The domestic ATF prices should be gradually reduced to match the rates charged on the international services.

The federation wants the Airports Authority of India (AAI) to shed its role as a custodian. Air cargo terminals must be privatised and allowed to be set up and operated by private airlines and operators. Air freight stations should be set up close to international airports with specialised facilities.

The need for enforcing cooling off period should be left to the discretion of airlines. It has called for computerisation of receipt, storage and removal of cargo in order to avoid delays in tracking. Cargo handling equipment at terminals need to be upgraded by issuing a policy directive that all systems used by the agencies in international trade should be in accordance with EDIFACT standards in a time bound manner.

The proposed new Civil Aviation Act which should replace the Aircraft Rules 1934, should ensure that before drafting such a legislation the views and opinions of all concerned should be considered. The ground handling facilities should be provided on the basis of self-handling system without discrimination between airports managed by the AAI and private airports.

Private participation in airport infrastructure development should be encouraged on the basis of BOO (Build, own and operate) system and all players in the domestic sector should be assured of a level playing field on the basis of equitable treatment and fair opportunity.

Assocham hails Cabinet decision on domestic airports

Meanwhile, the Associated Chambers of Commerce and Industry of India (Assocham) has described the grant of international status to six domestic airports by the Union Cabinet as a major step towards boosting India's tourism and industrial sectors.

The recommendation was made at a two-day international meet on tourism and civil aviation organised by the Central Government and the Assocham in December, recalled Assocham in a news release.

The Assocham chief, Mr. Shekhar Bajaj, said the upgradation of airports would allow foreign carriers to bring in-bound travellers directly to Hyderabad, Kochi, Ahmedabad, Goa, Guwahati and Amritsar.

Besides easing the pressure on gateway cities of Delhi, Mumbai, Calcutta and Chennai, the new international airports will facilitate direct travel by foreigners and ethnic Indians to their destinations and at the same time give a fillip to tourism in the North-East and Goa.

Mr. Bajaj felt the spin-off benefits of airport upgradation are bound to be felt by industries located in and around the new gateway cities.

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