Upgrade of airports, reviewing curbs on carriers key tasks

Image
Press Trust of India New Delhi
Last Updated : May 27 2014 | 5:45 PM IST
New Civil Aviation Minister Ashok Gajapathi Raju Pusapati and his Minister of State Gowdar Mallikarjunappa Siddeswara would have tasks cut out for them when they assume office tomorrow.
They would have to address crucial issues facing the aviation sector including construction and upgrade of airports including low-cost ones across the country, reviewing the 5/20 rule to allow Indian carriers to launch global operations and the issue of downgrade of India's safety ranking by US regulator Federal Aviation Administration (FAA).
While Raju is a veteran leader, Politburo member of the Telugu Desam Party and a seven-time legislator, Siddeswara is a senior BJP leader elected from Davangere constituency of Karnataka for the third successive term since 2004. Raju, known for his philanthropic activities, belongs to the titular family of Vizianagaram.
Among the critical issues the two leaders would have to address is the turnaround of cash-starved Air India, whose financials have lately started looking up.
The Ministry has recommended to the new government to continue the turnaround plan and infuse the much-needed equity in Air India, whose profitability has been steadily improving. This recommendation was made despite some quarters suggesting privatisation of the national carrier.
Another major issue would be the modernisation of six metro airports, including those at Chennai and Kolkata, and almost 30 non-metro airports and the work would have to begin soon. Besides, there is a growing demand for building of low- cost airports in various parts of the country.
The new government would also have to take urgent steps towards restoration of the top Category-I status of the country's safety mechanism, which was downgraded to Category- II by FAA in January.
An overall presentation on these and other issues would be made to the Ministers soon after they take charge. This would be followed by detailed briefings on every crucial aspect of the sector, official sources said.
*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: May 27 2014 | 5:45 PM IST

Next Story