"India outlines major airport expansion in '05"

Thursday, January 13, 2005

Ministry outlines major airport expansion in '05
The Indian Express


The civil aviation ministry has chalked out plans to set up 30 terminals at
a cost of Rs 5,000 to Rs 6,000 crore. The Airport Authority of India (AAI)
intends to raise this amount through borrowings. The existing airports will
also be upgraded to world-class by 2005-06. Civil aviation minister Praful
Patel said at a press conference that 2005 will be the year of airports for
the Indian aviation industry. "About 30 new terminals will be set up and the
existing ones will be transformed to world-class. New terminals are planned
across the country, the construction work for which will begin in 2005 and
completed by 2007-08," said Mr Patel. The ministry is constantly looking for
increased efficiency in public sector airlines. According to Mr Patel, the
biggest challenge for Air-India and Indian Airlines is from the
international airlines operating in India. With these initiatives, the
position of the public sector airlines would be strengthened, he said.
Further, Indian Airlines and Air-India are expected to begin cargo
operations in a big way in 2005. The minister also expressed concern over
the high aviation turbine fuel (ATF) charge. The ministry has appealed to
the finance minister to reduce ATF charges. The ATF charge constitutes 30%
of the operating cost of airlines, which in turn eats away the airline's
profits. Mr Patel added that in the near future, the government is likely to
allow purchase of ATF from private sector players. Currently, it is
purchased only from public sector oil companies.


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