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Home  » Business » Patel justifies airport privatisation

Patel justifies airport privatisation

Source: PTI
February 03, 2006 18:34 IST
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The modernisation of non-metro airports may have suffered if funds of the Airports Authority of India were used to modernise Delhi and Mumbai airports, Civil Aviation Minister Praful Patel said.

"If we had tried to upgrade these two airports with the funds available with the AAI, then what would have happened to the other airports," asked Patel in the 'Seedhi Baat 'programme on 'Aaj Tak'.

He said since these two airports required maximum investment, "we have gone for private participation and the funds with AAI will be used for upgradation of other airports in the country, where it will be done by AAI only," according to a release by the private TV news channel.

The drama of airport privatisation

Asked about the proposed Initial Public Offer proposals for Air India and Indian Airlines, Patel said advisors have already been appointed and the two public sector carriers "are likely to go for IPO in the coming months".

To a question whether the two carriers would be merged, he said "anything can happen" but no decision has been taken as yet. He said it did not really matter if such a decision was taken before or after the IPOs were issued.

On the fleet expansion of Air India and Indian, Patel said the decision had been kept pending for 16 years and now almost Rs 45,000 crore (Rs 450 billion) were being spent to buy new aircraft. "The fleet size will be 300 by the year 2007".

Regarding the fog problem, he said the airlines would not be allowed to land in Delhi from next winter if they do not train their staff by then.

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