Diluting substantial control over airlines opposed by Patel

A variety of new steps are being incorporated to put Indian civil aviation at par with global standards. With the present BJP led government operating in Delhi, new measures are being taken for the upgradation  of Indian civil aviation. But as per the former union minister Praful Patel who has enough  experience as far as Indian civil aviation is concerned, just handing over the substantial control to foreign carriers would not bring glory days for the sector ahead.  This kind of a move is certainly opposed to national interests and handing over Indian Airlines to foreign entities is kind of ridiculous.

During his tenure as the civil aviation minister Praful Patel had taken many concrete steps related to the improvement of the sector.  As one of the key personalities who has comprehensive knowledge about Indian civil aviation, it was only during his own tenure that the civil aviation policy in India was drafted. 

As per the version of the former minister,  “ The government should not be only favouring select Indian carriers while bringing in a new policy and instead ensure a level playing field for all of them. 

Asked about the proposal to raise the FDI cap in airlines from 49 to beyond 50 per cent, he said "all over the world, the issue of substantial ownership and effective control (of an airline) is very minutely scrutinised" as aviation industry is different from any other and is affected by several factors including external.

"I am surprised that the draft aviation policy carries a provision to increase the FDI limit over 50 per cent. That is ridiculous. You have already done 49 per cent. 50 per cent or more will hurt the country." 

He said the United States does not allow more than 25 per cent voting rights by foreigners in an airline's board, while in Malaysia and Singapore, "you may not be allowed to buy into their airlines ... Do these countries have reciprocal policies (on FDI in airlines ? 

If the country's carrier has to carry the Indian flag, its foreign ownership cannot be 50 per cent or more. It (increasing the existing FDI limit) will hurt the country," he said, adding that an airline that carries the national flag on its tail has to be substantially owned by Indians. 

Stressing the need for having national flag carriers, he said "this template also goes against the spirit of the ICAO resolutions".

The UN body ICAO (International Civil Aviation Organisation) has evolved a series of rules and procedures on various aspects of the aviation industry business which are being followed by all governments and their airlines. 

Regarding the 5/20 norm which allows an Indian carrier to launch global operations after flying five years domestically and having a fleet of 20 aircraft, Patel said the government has to ensure a level-playing field vis-a-vis the existing carriers and "should not appear to favour the new entrants.  Under the Praful Patel constituency, Indian civil aviation had progressed a long way but it remains to be seen what happens in the upcoming years.

Author Bio: Under the Praful Patel constituency, Indian civil aviation had progressed a long way ahead during his  tenure. Former minister Praful Patel has opposed the present move of the NDA government in diluting substantial control over airlines.