The Union Cabinet, on Friday, decided to refer the much-talked about Aviation Policy to a Group of Ministers (GOM) for further broad-based consultations on sensitive issues including the norms for allowing private carriers to fly abroad.

“The Cabinet decided to refer the Aviation Policy to the GOM for further consultations,” Parliamentary Affairs Minister P R Dasmunshi told reporters after the Cabinet meeting.

Asked who would head the GOM the Minister said “The Prime Minister would soon constitute the GOM.”
The Cabinet decided to refer the proposed Aviation Policy termed as Vision-2020 to GOM as it was felt that proposals like allowing private carriers to fly abroad needed to be discussed with “more details,” sources said.

The proposed aviation policy is understood to be weighing the pros and cons of allowing the Civil Aviation Ministry to take decisions to allow private domestic carriers to operate on international routes as and when required and on whichever route the demand exists, sources said.

Poor infrasructure

There is a view that it would not be ideal to allow private carriers to operate more and more on international routes given the existing poor infrastructure in airport sector.

It will be better to first create infrastructure facilities to meet growing air traffic and then allow private airlines to further expand their route networks, sources said.

The proposed aviation policy is also weighing the proposal to hive-off Air Traffic Control (ATC) from the Airport Authority of India (AAI) to form a separate company, sources said. However, there appears to be divergent views on this issue.

There is apprehension among some sections that separation of ATC from the AAI would lead the latter to lose a substantial chunk of its revenues.

The proposed long term aviation policy is also expected to deal with the sensitive issue of allowing more Foreign Direct Investment (FDI) into the civil aviation sector, which is now restricted to 49 per cent. The government has already approved 100 per cent FDI in the operation of sea-planes, helicopters and green-field airports.