With the new government likely to initiate a wider consultation on the restructuring of the Delhi and Mumbai airports, the deadline for submitting the expression of interest for the projects may be extended from the June 4, 2004, deadline.
New Civil Aviation Minister Praful Patel said today the new government would also await the broad policy guidelines from the common minimum programme before finalising its policy on airport infrastructure.
Before a final decision was taken Prime Minister Manmohan Singh would also be consulted, he said.
Besides, the government does not intent to limit the restructuring to these two airports.
"The restructuring process will not be confined to these two airports only but spread to others, especially those declared international airports," he said, and added that there would be a radical change and world-class infrastructure would be ensured at all airports.
Observing that privatisation was not the only way to strengthen the two public sector carriers, Patel today said his priority would be to strengthen Indian Airlines and Air-India and bring them back to their past glory.
When asked if the government's stake in the national and international flag carriers would be reduced, Patel said, "Selling stake in the two companies is not the only solution. Even to get the right valuation the companies should have certain strengths. We should try build those aspects."
On the issue of allowing private airlines, now operating to Saarc countries, to fly to other foreign destinations, he said, "The first preference would be given to Air-India to take advantage of any capacity available in any sectors. If there are commitments that Air India is not able to meet, then we can think about allowing private airlines to fly in those sectors."
Apart from this, he also said the modernisation of the fleet of the two airlines was high on the agenda of the government.
"For more than a decade, neither of the two airlines have purchased any new aircraft. They have only taken planes on dry lease. My ministry will lay special emphasis on strengthening the two carriers so that there is a healthy competition with the private sector," he said.
Stating that the ministry would lay a special emphasis on bringing the comprehensive civil aviation policy, Patel said, "In this, we will ensure that Air India is made capable of capturing inbound and outgoing traffic to various foreign destinations."
The "very low" passenger-carrying capacity of Air-India had paved way for private airlines to bring and take traffic from and to foreign destinations.
On the adoption of the Naresh Chandra committee report, Patel said, "I believe it is part of the civil aviation policy, which will be discussed. Once the policy is finalised, it will be put before the Prime Minister."
Comparing the IA and A-I with private airlines, Patel said, "The two PSUs have an aging fleet, while private airlines have new aircraft. Let us acquire some more planes for the two carriers and after that let there be a healthy competition. We don't mind that."