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Aviation plan tossed to ministers

New Delhi, June 15: The Congress-led government has decided to refer the aviation policy to a group of ministers.

At the cabinet meeting today, there were differences over the proposal to hive off the air traffic control department from the Airport Authority of India.

A consensus on letting private carriers fly abroad also eluded the ministers.

The policy wanted to hive off the traffic control department from the AAI to form a separate company. However, many at the meeting opposed the proposal because it would reduce the AAI’s income.

The opposition to letting domestic carriers fly abroad was over the absence of specific rules.

The civil aviation ministry wanted the right to vet each application on a “need basis.”

However, the other ministries wanted proper guidelines on airlines flying abroad.

Existing rules allow domestic carriers with at least five years of experience and a fleet of 20 aircraft to operate global flights. The carriers are a divided house on this issue.

Older players do not want the norms to be relaxed, but the newer ones such as Kingfisher and SpiceJet want the permission to fly abroad as soon as possible. This is because it will help them balance the losses in the domestic sector.

Passengers to the Asean regions are likely to get a wider choice of airlines from the country.

Sources said the government may change the rules for this region. India has signed a treaty to open up the four metros to almost daily flights by airlines from the Asean.

Vision 2020 — the name for the new aviation policy — does not relax the norms that cap foreign direct investment at 49 per cent and disallows foreign airlines from directly or indirectly owning any stake in Indian carriers.

If the finance ministry had its way, the FDI limit as well as the entry of foreign airlines as shareholders would have happened much earlier.

Russia flights

India and Russia have agreed to increase flights between the two countries. The countries had bickered over the flight rights a month ago.

There will now be 52 flights a week by the designated carriers of each country from 46 at present.

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