5m Flew By Pvt Airlines, Says Survey

The number of Passengers availing private airlines services has risen gradually to about 5 million in 1996 from only around 15,000 in 1990, accounting for 34 per cent of the domestic air transport services, says the 1997-98 economic survey. At present, there are five scheduled private operators providing domestic air services along with the Indian Airlines in the public sector.

The survey points out that the new policy for private investment in the civil aviation sector allows for 100 per cent NRI\OCB equity and 40 per cent foreign equity participation in domestic airlines.

However, equity participation by foreign airlines, directly or indirectly, has not been permitted, the survey says.

 

IA reduced its losses to Rs 14.6 lakh in 1996-97 from Rs 110 crore in 1995-96.

The number of passengers carried by Indian Airlines grew by 5.6 per cent in 1996-97.

The company has also introduced four new international services and also a few new domestic traffic routes. The Airlines Allied Services Ltd, has been revitalised as Alliance Air.

In 1996-97, the Airports Authority of India (AAI), earned a net profit of Rs 132.1 crore as against Rs 145.2 crore in 1995-96. The lower level of profit was attributed to the higher scales of pay and allowances and increase in maintenance and other input costs.

The survey also pointed out that several projects like modernisation of air traffic services in Mumbai and Delhi airports, installation of air surveillance radars at certain airports, development of 12 model airports for upgradation of facilities and improvement in quality of services have been taken up by the government.