Date:29/08/2005 URL: http://www.thehindubusinessline.com/2005/08/29/stories/2005082901220500.htm

Back To combat choked grounds under open skies — `Aviation sector needs to attract more FDI'

Our Bureau

Kochi , Aug. 28

INDIA should attract more foreign direct investment in the aviation sector for its future projects, Mr Peter Hill, CEO of SriLankan Airlines, has suggested.

The Government needed to show more proactive, investor-friendly policies as there were shortcomings related to infrastructure development in the aviation industry, he said, speaking at the business session on `Open Skies and Choked Grounds,' at the 21st Indian Association of Tour Operators (IATO) annual convention here on Saturday.

According to Mr Hill, a lot of emphasis has to be placed on the industry considering the future growth in the sector in the next 10 years.

The growing demand of airlines requires more pilots and maintenance staff. It is estimated that at least 200 new aircraft will operate by 2010.

However, infrastructure in civil aviation was not maintained well and for this private participation was necessary, he said.

India, China and West Asia were the emerging countries, region, in the civil aviation sector in the world. China was the fastest growing country and it had changed its landscapeto set up more airports by spending billions of dollars. Apart from upgrading three airports to international standards, it was going ahead with setting up more airports with world-class facilities, he said.

Mr V. Thulasidas, CMD, Air India, said problems relating to lack of infrastructure facilities at airports would be addressed soon by the Government. Inadequacy of space and congestion at emigration clearance were some of the issues in the way of development of airports. He said the Fast Track mechanism for speedy clearance of passengers, introduced in Mumbai airport, would be extended to other airports in due course.

Under this, a passenger can make advance check-in for his baggage on the previous day of his journey and can collect the boarding pass for the flight.

According to Mr Thulasidas, most flights of Air India were experiencing heavy operational cost because of rise in crude prices. Moreover, hold in air and hold in landing of aircraft was also causing a heavy dent in the income of Air India.

Mr Anil Goyal, Commercial Director, Indian Airlines, said the aviation sector had really grown much faster following the opening up of the skies. Last year, there had been a remarkable growth in capacity and tourist arrivals.

However, there were some constraints in airport infrastructure related to parking bays and increase in ground timings as the airports were not designed as hub airports.

There were plans to construct 10 international airports in the country and of this, two would be like that of Dubai and Singapore, he said.

The airline industry was passing through a phase of operational difficulty, such as rise in ATF prices, low yields, poaching of manpower, etc.

The Government had taken up serious efforts for improvement in connectivity and capacity, he said.