The state owned helicopter operator, Pawan Hans Helicopter Limited (PHHL) and airport operator, Airports Authority of India (AAI) are to be listed on the stock exchange, Minister for Civil Aviation Ashok Gajapathi Raju, said on Monday. Set up in 1985, PHHL is currently the largest helicopter operator in the country.
A senior Ministry official told newspersons that no time frame has yet been fixed by when the two entities will be listed or what percentage of the Government’s holdings in the companies will be shed.
“It will be easier to list PHHL because it is already a registered company. It could take up to six months for listing PHHL. We will work with the Department of Disinvestment as it is the nodal Ministry for divesting stake in PSUs. Mopping up funds is not the prime objective of the exercise in both the entities. It will also help bring about greater professionalism in the boards of the two entities,” the official who declined to be identified said.
Briefing newspersons after releasing the draft Civil Aviation policy, the Minister also said that an expert committee will be set up to draw up a future road map for Air India which will help it achieve its full potential.
International hubs
The draft policy, which is now available in the public domain for greater participation from stakeholders, proposes enhancing regional air connectivity, developing six major metro airports as international hubs, creating more airports through PPP mode, rationalising jet fuel costs, promoting air cargo, starting Maintenance Repair and Overhaul services and helicopter operations apart from stressing on improving passenger facilitation.
The Minister expressed the hope that the draft policy will be finalised by January next year.
Air India privatisation
The Minister also hinted at the eventual divestment of Air India pointing out that there were several suggestions made by different sections including some saying that privatisation is a solution while others felt it should remain a public entity.
Pointing out that there were several issues which had been mentioned in the draft policy but for which the Cabinet will not will be required including doing away with the five year and 20 aircraft rule for allowing domestic airlines to start international operations. The Minister added that the 5/20 rule did not make sense.