Allow FDI in airline infrastructure: PHDCCI

NEW DELHI: The new civil aviation policy should allow foreign direct investment for developing airline infrastructure and encourage larger participation of private players, industry chamber PHDCCI has said.

"As the civil aviation sector is expected to see 25 per cent growth in the next 10 years, civil aviation infrastructure needs faster development through public-private participation mode, to be supplemented by foreign direct investment," PHDCCI President Sanjay Bhatia said.

He said the new policy should facilitate entry of new private carriers and promote healthy competition to benefit the national economy and air passengers.

More funds from private sector and FDI were needed as airport development in the country has not kept pace with the growth of the economy and passenger and cargo traffic, the statement said.

"The airport infrastructure was developed expecting a growth of 16 per cent in air transport traffic per annum but the actual growth during the last three years has been in the range of 24-28 per cent," it said.

The chamber has sought that the policy should provide a long-term vision beyond 2020. According to the government, the number of aircraft on scheduled operations would increase to 1,000 from current 321 and air passengers would go up to 280 million by 2020 from 95 million at present.

Liberalisation of rules and regulations governing the civil aviation, without compromising on safety and security, and reduction in aviation turbine fuel (ATF) prices and taxation of ATF and lease rentals are also important, it added.