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February 06, 2007 12:54 IST
Last Updated: February 06, 2007 14:06 IST
The civil aviation ministry is hopeful of further reduction in the price of aviation turbine fuel this year.
"Oil PSUs have assured me that there will be a reduction in the base price of ATF this year," Civil Aviation Minister Praful Patel said in New Delhi.
He said the government was not keen on regulating the oil PSUs but was keen on giving them "some direction". The increase in ATF prices has been an issue of concern for the airline industry. Prices for the aircraft fuel were reduced recently.
On the issue of allowing entry of foreign airlines in the aviation sector, Patel said such a move at this juncture would prove detrimental for the domestic players. "If foreign airlines are allowed now, they will gobble up Indian airlines," he said. Patel said there existed a great opportunity for Indian carriers to scale-up operations and establish themselves firmly.
"We are giving them time to strengthen themselves. We are confident that they can grow at phenomenal rates and can acquire foreign airline companies in the future," he said.
The current FDI limit in the civil aviation sector is 49 per cent. Patel said his ministry has mooted 100 per cent FDI in helicopter and sea plane operations along with maintenance, repair and overhaul facilities.
"For non-scheduled and cargo operations, we have proposed raising the FDI cap to 74 per cent. We may also consider allowing foreign airlines participation in the air cargo sector," he said.
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