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The Prime Minister, Dr Manmohan Singh, met all the private airlines' chiefs this morning. Although it is not immediately known, what transpired at the meeting, it is believed that the private airlines detailed their extremely poor financial health and immediate action required from the government.
A top Government official said, "Now, on the basis of instructions from the Prime Minister's Office, the Civil Aviation Ministry will take forward a formal proposal for consideration and decision." It is not confirmed whether the Civil Aviation Minister Mr Vayalar Ravi was present during the meeting or not. However, the Civil Aviation Secretary, Mr Naseem Zaidi, was not part of the deliberations, sources said.
Interestingly, Kingfisher Airlines' chief, Mr Vijay Mallya, did not attend the meeting which saw the presence of the Jet Airways Chairman, Mr Naresh Goyal, IndiGo promoter, Mr Rahul Bhatia, SpiceJet CEO, Mr Neil Mills, and Go Air owner, Mr Jeh Wadia. The meeting lasted for an hour.
The meeting comes in the wake of some airlines demanding change in the aviation policy to allow foreign airlines to pick up stake in Indian carriers.
Ahead of the meeting, the Civil Aviation Minister, Mr Vayalar Ravi, had said on Friday yesterday that the airline sector in the country is running at a loss posing a ‘problem’. "The PM is concerned about it; it’s the major institution of connectivity, supporting the development of the country," he added.
To a query about moves to go for foreign direct investment (FDI) in the aviation sector, the Minister had said that he cannot make any comment since Parliament is in session. The Prime Minister had said on November 12 that Government will explore "ways and means" to help the private airlines.
Dr Singh had said that private sector airlines should be managed efficiently. "But if they do get into difficulties, we have to find ways and means to help them get out of the process," he added.
The Industry Ministry has moved a draft Cabinet note on allowing 26 per cent FDI by foreign airlines in the domestic carriers.
"Private airlines in the country are in dire need of funds for their operations and service up-gradation to compete with other global carriers," the note circulated by the Department of Industrial Policy and Promotion (DIPP) had said.
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