There will be no hasty decision on privatisation of Air India, new Civil Aviation Minister Ashok Gajapathi Raju Pusapati said on Thursday, indicating that all issues will be examined and the new government is ‘not close to any idea’. ‘There are private airlines and there is a public sector company. Public sector does have a place and a lot of countries have public sector companies. As of now, we are trying to formulate our views,’ Pusapati said.
‘I am not close to any idea,’ he said when repeatedly asked whether he would favour privatisation of the state-run airline.
Later, he also said the state-run companies ‘in several countries do function rather well. Somehow for us, it has not happened that way ... but we have to examine all aspects...Air India is a public sector undertaking. It has its pluses and minuses. How to develop it, we
have to look into.’
He said several airlines were under financial stress, but the country needs more airlines. ‘Let us see if anything the government can do to correct this situation. We have to be of use to them. We are open to suggestions from all quarters.’
Soon after taking over, he said, ‘We will strive to create a level-playing field for all the players and make the aviation sector more people-oriented.’
Asked about loss-making airports run by Airports Authority of India (AAI), 63-year-old Pusapati said, ‘Profitability is one angle, connectivity is another. We will take a balanced view.’
‘At the general level, we can say ... we won’t protect anyone, neither will we persecute anyone... Our direction will be to encourage efficiency and honesty. As they say, everyone is honest till there is an opportunity to be dishonest,’ he replied.
On privatisation of airports including those at Kolkata and Chennai, Pusapati, a senior TDP leader, said he would take a call only after examining all related issues.
Regarding high taxation on jet fuel, he said, ‘We will consult the Finance Ministry if necessary.’When pointed out that US Federal Aviation Administration has downgraded India’s safety ranking, the Minister said, ‘We are trying to correct those things (the issues raised by FAA) and restore the status (Category-I or the topmost ranking).’
To questions on bilateral air services agreements, especially with Gulf nations, and the role of foreign players in the aviation sector, he said, ‘We have to be of use to them without being detrimental to our interests.’
‘I am not close to any idea,’ he said when repeatedly asked whether he would favour privatisation of the state-run airline.
Later, he also said the state-run companies ‘in several countries do function rather well. Somehow for us, it has not happened that way ... but we have to examine all aspects...Air India is a public sector undertaking. It has its pluses and minuses. How to develop it, we
have to look into.’
He said several airlines were under financial stress, but the country needs more airlines. ‘Let us see if anything the government can do to correct this situation. We have to be of use to them. We are open to suggestions from all quarters.’
Soon after taking over, he said, ‘We will strive to create a level-playing field for all the players and make the aviation sector more people-oriented.’
Asked about loss-making airports run by Airports Authority of India (AAI), 63-year-old Pusapati said, ‘Profitability is one angle, connectivity is another. We will take a balanced view.’
‘At the general level, we can say ... we won’t protect anyone, neither will we persecute anyone... Our direction will be to encourage efficiency and honesty. As they say, everyone is honest till there is an opportunity to be dishonest,’ he replied.
On privatisation of airports including those at Kolkata and Chennai, Pusapati, a senior TDP leader, said he would take a call only after examining all related issues.
Regarding high taxation on jet fuel, he said, ‘We will consult the Finance Ministry if necessary.’When pointed out that US Federal Aviation Administration has downgraded India’s safety ranking, the Minister said, ‘We are trying to correct those things (the issues raised by FAA) and restore the status (Category-I or the topmost ranking).’
To questions on bilateral air services agreements, especially with Gulf nations, and the role of foreign players in the aviation sector, he said, ‘We have to be of use to them without being detrimental to our interests.’