"Core group to shortlist Indian airport bidders soon"

Thursday, August 19, 2004

Core group to shortlist airport bidders soon 
India - The Business Standard


New Delhi, India - The inter-ministerial group (IMG) for modernising
Delhi and Mumbai airports would shortlist the bidders for the airport
revamp joint ventures within the next few days, Civil Aviation Minister
Praful Patel said today.  
  
The shortlisted bidders would then be invited for technical and
financial bids and a final recommendation would be forwarded to the
empowered group of ministers (EGoM), Patel said on the sidelines of a
marketing summit on 'Challenging the Value of Marketing', organised by
the Confederation of Indian Industry (CII).  
  
Ten consortiums, including Reliance, Videocon and DLF, had expressed
interest to bid for the 74 per cent stake in the joint venture
companies, in which the Airports Authority of India will hold a 26 per
cent stake.  
  
The IMG is evaluating the expressions of interest and would take a
decision within the next few days, he said. Final partners for the two
JV companies will be selected by the year-end.  
  
The minister also said a new policy, allowing domestic air carriers to
fly to ASEAN countries, is in the offing.  
  
Private domestic airlines are currently allowed to operate to Saarc
countries and the ministry is preparing a policy paper to allow them to
mount services to ASEAN as well.  
  
Domestic private carriers have been pressing the government for
permission to fly to Asean countries.  
  
The private airlines are now allowed to fly to the Saarc countries. The
ministry has already asked the ASEAN members to accord multiple
designated carrier status to India, which will help airlines like Jet
and Sahara to start services to these destinations.  
  
Patel also said that it is planning to convert the state-owned Alliance
Air into a no-frills, low cost airline.  
  
"We have received tenders for the new aircraft. Our idea is to make
Alliance Air a low-cost airline. We will see to it that it is positioned
as a low-cost, no-frills airline which is equally competitive," Patel
said.  
  
Alliance Air had invited bids to lease 11 Airbus A-319 aircraft and will
finalise the deals shortly. The first aircraft will arrive in India by
early-2005.


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