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Government to allow 40 per cent foreign equity in domestic airlines sector

Indian Airlines will acquire 22 new 54-seater aircraft to enhance its domestic operations, says Civil Aviation Minister Ananth Kumar.

Talking to newsmen after visiting the site for the proposed airport at Gulbarga, he said 12 global tenders had been shortlisted for the purchase of the aircraft. The introduction of a 54-seater aircraft would help the airlines cover more areas. There was also a proposal to introduce passenger-cum-cargo services in the future, he added.

He said government policy was against allowing any foreign airline to operate in the country's domestic sector. However, the government would allow 40 per cent equity to foreigners and non-resident Indians if they came forward.

He said his ministry would ask the Karnataka government to provide 386 acres of land -- in addition to the 214 acres already allotted -- for the Rs 600 million project. The project would be sanctioned, once the state government acquired the additional land. However, his ministry would send an expert committee within a month to study the feasibility of the project.

He said the Mangalore airport would be further expanded by extending its runway to 8,,500 feet at an additional cost of Rs 900 million. This would facilitate landing of international flights. Indian Airlines will start services on the Hubli-Bangalore and Hubli-Bombay sector from July 15. The Hubli airport would be made an all-weather airport, he added.

UNI