Airlines running into losses worth crores notwithstanding, the year 2006 will be best remembered for growth that the sector witnessed: 48 per cent in domestic passenger traffic and 32 per cent in total domestic aircraft movement (191,150 aircraft movements recorded between April-June). Government figures put the number of domestic passengers carried till November 2006 at 29 million, a record. Many feel that this is the kind of growth which will drive the civil aviation sector in 2007.

The year may begin with the tabling of the Airport Economic Regulatory Authority (AERA) Bill in the Budget session of Parliament. Once cleared, AERA will approve tariff structure of airport charges including air navigation charges and will monitor preset performance standards for airports with an idea to promote a level playing field. Air navigation charges levied by Airports Authority of India (AAI) will also be subject to AERA’s approval.

Next in line, and perhaps the most awaited development in 2007, would be the merger of both the national carriers Air India and Indian Airlines into a single entity. If all goes as planned, the country could get a unified carrier under a new brand name, new identity.

Similarly, the subsidiaries of both carriers — Air India Express and Alliance Air — would also be merged to have a new unified subsidiary catering to low-cost operations. The merger, aimed at optimising fleet acquisition and leverage the asset base of both carriers, would figure high on the government’s agenda with civil aviation minister Praful Patel making it clear that he wants the merger to go through before the end of this fiscal.

... contd.