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This is an archive article published on July 12, 2004

145;Restructure AAI to put reforms on track146;

Despite the protests and dharnas, it is widely agreed that civil aviation reforms have more or less been lined up for take-off. But when do ...

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Despite the protests and dharnas, it is widely agreed that civil aviation reforms have more or less been lined up for take-off. But when do they begin is the question, and recently retired Civil Aviation secretary K. Roy Paul hopes it happens soon.

8216;8216;Unfortunately, the last Cabinet meeting did not have time to deliberate on the draft civil aviation policy,8217;8217; Paul says.

8216;8216;The prime focus should be on affordable and easy connectivity, both national and international. Interests of the national economy and the travelling public should get precedence over the welfare of PSUs,8217;8217; he told The Indian Express in his first exclusive interaction after retirement.

8216;8216;There was a mindset earlier not to open up the sector. National carriers, PSUs like the AAI and their unions were all against it in some form or the other.8217;8217;

Three years hence, the scenario has changed. But reforms for the sector as a whole is yet to happen. Paul, who was also on the Naresh Chandra Committee on civil aviation reforms, identified three steps that need to be taken immediately to put reforms on course. 8216;8216;These are steps which are vital for other reforms to succeed in the future.8221;

First, there has to be a thorough restructuring of AAI:

8226; Major airports need to be converted into separate companies on the lines of Delhi and Mumbai.

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8226; The ministry8217;s pending proposal to set up autonomous regional airports authority needs to be taken up.

8226; Engineering and consultancy services should be reorganised as a separate profit centre.

8216;8216;You cannot have a single organisation controlling all airports from Delhi. This stunts local initiative. Ideally, AAI should only control air traffic services, coordinate on security and oversee flow of surplus funds to loss-making airports.8217;8217;

Second, the Government needs to strengthen national carriers and promote synergy between them:

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8226; Restructuring airlines based on findings of AT Kearney, the independent consultants.

8226; Promoting synergy so that common aircraft acquisition plans can be made with a shared approach to operations and marketing.

Third, opening up the air bilateral regime to allow private domestic carriers on international routes:

8226; There are a large number of unutilised air bilaterals that the national carriers and private carriers can benefit from.

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That this will have a negative effect on Air India and Indian Airlines, Roy Paul says, is a fallacy. 8216;8216;Those giving this argument do not realise that they are actually helping foreign airlines, many of whom are wary about competition from the Indian private sector.8217;8217;

New Civil Aviation Minister Praful Patel, he says, is 8216;8216;very positive8217;8217; and there is hope that he would take the process ahead. 8216;8216;Most of the hard work has been done, it is now a question of taking a decision and implementing it.8217;8217;

 

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