Against the backdrop of airline industry's demand for a Rs 4,750 crore bailout package, Civil Aviation Minister Praful Patel has expressed disappointment over the approach of some ministries on sops for the sector.
"We need a consensus," he said while regretting that "many departments are not taking a positive approach."
Taxes on ATF and charges for aviation services could be eased to help airlines fly out of the crisis fuelled by high jet fuel costs and the world economic slowdown, he said.
But the government is awaiting the recommendations of an official panel in this regard.
"It is a tough time for the entire aviation industry worldwide... Government is sensitive to the problem... I have already given (the Prime Minister) an overall picture... after which a committee was constituted. But its recommendation will take sometime," he told reporters in Hyderabad on Wednesday.
Airlines, both private and state-owned that are already facing high fuel costs, are now reeling under the effects of the global financial crisis with drop in premium air traveller numbers.
"We can reduce fuel bills by cutting taxes or ask oil companies to cut base price for airline industry, landing, parking and route navigation charges could also be reduced for a small period of time," said Patel, who was in Hyderabad for the India Aviation-2008, civil aviation expo.
The airlines have sought a bailout package worth Rs 4,750 crore to tide over the crisis spawned by fuel costs and poor load factor.
"If tomorrow no plane flies on the Indian skies, who is there to answer. There is a bad patch in the industry and it needs to be resolved," he said.
Patel said that many airlines had complained to him that banks and lending institutions were not happy to lend to them.
"This will be on top of my agenda. I will meet the Finance Minister, will also meet bankers and ask them not to put undue pressure on airline industry, because it is infrastructure. They should keep some open window for the sector." he said.
The panel appointed to look into the bailout plan for airlines has in turn constituted a sub-committee, which is looking into the finer details of the Rs 4,750 crore package sought by the industry.
The sub-committee is expected to submit its report to the panel shortly, after which a comprehensive report would be presented to the Aviation Ministry.
The crisis in the industry has already forced Jet Airways and Kingfisher Airlines to strike an operational alliance, prune staff strength and routes to cut costs.
Earlier inaugurating the expo, Patel said India provided a huge investment opportunity in the aviation sector, and that about 200 to 300 billion dollars would be required in the next 10-15 years for development of aviation infrastructure.
There were about 400 old or unused airports in the country that could be brought into operation in a phased manner, he said.
Apart from regular air traffic, helicopter tourism, general and business aviation should also be exploited as they held huge potential, Patel noted.
Govt may provide Air India Rs 2,500 cr to see through crisis
The government may provide flag carrier Air India up to Rs 2,500 crore in the absence of funds from the market route, to help it stay in the skies right through the global financial crisis.
"It is owned by the government and as like any owner of a company, government should be ready to infuse liquidity into it. Air India has a very small liquidity base of Rs 145 crore and with an estimated aircraft of Rs 40,000 crore it is absolutely unacceptable.
"There is need to infuse further liquidity to make Air India a viable entity," Civil Aviation Minister Praful Patel told reporters in Hyderabad on Wednesday.
The 77-year-old airline, which initiated a fleet renewal programme three years ago and merged with its sister airline Indian last year, has proposed infusion of Rs 1,000-1,500 crore of equity capital.
It is also looking for soft loans to the tune of Rs 1,000 crore from the government that can be repaid over a period of time.
The airline like its private sector competitors has been facing a drop in traffic, especially premium air travellers a fallout of the global economic slowdown.
Asked about plans for the Air India IPO, Patel said there is no discussion on public listing and that there was "no point in talking about that at this juncture."
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