Aviation Ministry plans autonomous CAA

Aviation Ministry plans autonomous CAA
AGENCIES

NEW DELHI, FEB 9: Private sector participation would be a major thrust area in the civil aviation sector with the government proposing to have a "conducive competitive regulatory framework" for encouraging entry and participation of private airlines and privately-run airports.

The Civil Aviation Ministry, in its draft aviation policy, also proposes to set up a statutory autonomous Civil Aviation Authority (CAA) to effectively regulate air transport in the country and ensure aviation safety and security.

In encouraging private sector participation, the competitive regulatory framework would have "minimal controls" and private parties would be allowed to invest in construction, upgradation and operation of new as well as existing airports and cargo-related infrastructure.

The ministry also proposes to replace the Aircraft Act of 1934 by a new Civil Aviation Act to serve the changed civil aviation scenario in a liberalised environment and also to put in place the proposed CAA. The draft, which is likely tobe placed before the Parliament during the budget session, suggests that the proposed CAA set standards for and issue licenses to all agencies and personnel in the civil aviation sector including the airport, airport operators, passenger aircraft operators, security agencies, air travel operators, flying clubs, aero-sports clubs and training institutes.

The CAA would also ensure that these agencies or personnel continuously fulfill the standards and take appropriate corrective action. The proposed body would also ensure that "there are no unfair trade practices and market dominance through encouragement of entry and fostering of competition in accordance with the competition policy of the government and ensure level-playing field for all agencies".

On privatisation, the draft policy also states that the government would reduce its equity in all organisations like Indian Airlines, Air India and Pawan Hans Helicopter Corporation. It also proposes that it would encourage employees participation through theissue of shares.

Rationalisation of various charges and price of air turbine fuel would be undertaken to render operation of smaller aircraft viable so as to encourage major investment in feeder and regional air services by the private sector.

In a bid to open up construction of aviation infrastructure to private sector, the ministry has suggested that private bodies would be "free to undertake" construction and operation of new airports, airstrips, helipads, heliports, cargo terminals or handling facilities. Foreign equity participation would be permitted "up to 74 per cent with automatic approval and 100 per cent with special permission of the government", the draft policy said.

Besides private sector, the ministry also wants state governments, urban local bodies and joint ventures to participate in building of aviation infrastructure on a build-own-operate or any other pattern of ownership and management "depending on the circumstances".

Sector poised for growth: Naik
PANAJI: PetroleumMinister, Ram Naik today said the aviation was another sector like petroleum which was poised for rapid growth and deregulation of aviation industry was seen as a priority by the government. Inaugurating the two-day ninth international aviation seminar at Sinquerim, North Goa, the minister said the proposal to hand over select airports to private operators and the recent decision to disinvest stake in Indian Airlines were some of the new initiatives. The aviation industry was one of the core sectors and interminably linked to economic development of the country, he said.