BUSINESS

'The US market has tremendous potential'

July 10, 2004

Aviation Minister Praful Patel is new to his job but he's no stranger to the aviation industry. As a member of the civil aviation consultative committee he has followed the industry's ups and downs closely.

He spoke to Business Standard about the tasks ahead:

What do you think about the open-skies policy? Considering that Air-India's rights are left unutilised, would it make sense to allow domestic private carriers to enter the arena?

As recommended by the Naresh Chandra Committee, there is a strong case for allowing private airlines to operate on international routes.

Air-India: Of divestment and other issues

After all they are also Indian carriers and we cannot allow only foreign airlines to reap the benefits from the bilateral traffic rights that are available.

At present, foreign airlines are mostly operating unilaterally, as Air-India is not in a position to utilise all its bilateral rights. It is high time we think of giving stiff competition to the foreign carriers.

Most foreign airlines are interested in the Indian tourists going abroad. Do you think the open-skies policy is detrimental to our national interest?

Capacity constraints need not be resolved by purchase of aircraft alone. I have made it clear that the government will not come in the way of the two airlines if they wish to take aircraft on lease.

Capacity increase by way of leasing is a very common practice all over the world. In India the two public sector airlines have been increasing their capacity of late by way of leasing aircraft.

The US market is a key revenue earner for India. How do you plan to tap this market with Air-India?

There is already very stiff competition on the India-US route. I can see the competition intensifying further with carriers planning direct flights to US.

Air-India is considering this seriously. The US market also offers tremendous growth potential, which needs to be fully exploited.

What is the time schedule in which Air India is expected to get its fleet acquisition plan in place?

I would like the fleet acquisition to materialise at the earliest. It is a high priority item.

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