India considers allowing airport operators to run airlines, no decision yet

Union civil aviation minister Kinjarapu Rammohan Naidu

NEW DELHI: Govt is weighing the pros and cons of allowing airport operators such as Adani Group, which operates Mumbai Airport, to run an airline, although no decision has been taken yet. The Delhi and Mumbai airports went the PPP way in 2006 and their “operation, management and development agreement” (OMDA) does not allow the operators to have beyond 10% stake in an airline. Recently, the Adani Group had sought an amendment to the same. “Govt is clear that India needs more airlines, given the number of airports going to come up in India and the demand. Our ambition is to have at least five airlines with at least 100 aircraft each. So, if someone wants to start an airline, govt supports the idea. The issue is an airport (Mumbai and Delhi) doing so. We are examining the pros and cons of the same,” civil aviation minister Ram Mohan Naidu said here Tuesday. Naidu said no decision on the Adani request has been taken so far. “We need to create a system where the cons (of allowing such a move) are taken care of. Pros we know. As such in govt there is no clause or rule anywhere which stops airport operators from having airlines other than the OMDA agreement for Delhi and Mumbai. If BIAL (Bengaluru operator), which is a private operator, wants to operate an airline, there is no rule stopping him. That’s why we have to take a balanced approach,” said Naidu. Adani’s request has divided the airline industry with IndiGo promoter Rahul Bhatia opposing the move and Akasa founder Vinay Dube being in favour of the same. The minister spoke about other issues at an UDAN event. “Aviation ministry, Airports Authority of India and 21 States and UTs (have) come together and sign MoUs to put a greater focus on speed, sustainability and long-term viability of projects in the next phase of UDAN… 100 airports will be developed under challenge mode over the next 10 years,” Naidu said.

SpiceJet

The cash-strapped airline’s woes have been mounting and its passengers often suffer delays running in several hours. “We are closely monitoring SpiceJet’s operations and finances through the aviation regulatory body to ensure safety is not compromised,” Naidu said.

Dope test on pilots

“The intention of the ministry is that all pilots must get tested within a year. The framework for the same has to be issued by the regulator DGCA,” said the minister.

No fare caps this festive season

Airfares will not be capped this festive season and the aviation ministry will advise airlines to keep the same at reasonable levels, said Naidu. The recent hike being seen is not due to spike in demand but due to increased jet fuel prices. “We definitely make a point to them (airlines) that during this festive season, you have to ensure that fair prices are kept at a reasonable level so that people who want to travel, get to see the benefit,” the minister said.

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