Date:29/04/2006 URL: http://www.thehindubusinessline.com/2006/04/29/stories/2006042901520700.htm

Back Sops likely for airlines linking metros, small towns

Our Bureau

Part of attempts to create a National Aviation Grid

MR PRAFUL PATEL

Mumbai , April 28

The Ministry of Civil Aviation is planning to come out with a five-year incentive package for airline operators that link metros with regional centres, as part of its attempts to create a National Aviation Grid connecting smaller towns with big cities.

Delivering the keynote address at the Aviation Investors Summit here on Thursday, Mr Praful Patel, the Minister for Civil Aviation, said the incentives would be in the form of waiver of certain airport user charges, parking charges, route navigation charges and landing charges.

Admitting that the aviation sector faced infrastructure constraints, he, however, said even with the existing infrastructure, air connectivity could be improved.

"I am asking all the State Governments to identify airstrips that are not in use and develop them through public-private participation," he said.

The Ministry has identified 35 non-metro airports for development, out of which the Planning Commission had given approval for 10 already.

As there are some "unviable airports" in these, the Ministry will hand over a cluster of five airports, having a viable mix of both the categories of airports, to private parties for development and operation.