Bill to create alternative to DGCA likely

Civil Aviation Minister, Ajit Singh

A Bill to create a Civil Aviation Authority to replace the Directorate General of Civil Aviation (DGCA) would likely be introduced in the winter session of Parliament, civil aviation minister Ajit Singh said on Tuesday.

The new authority is being proposed in a bid to strengthen the regulator by giving it adequate financial and administrative authority to address current constraints in recruitment and retention of technical manpower.

During the press conference, Singh was asked about the frequent strikes at Kingfisher Airlines, “We are concerned about it but no government bailout is possible; it is not even being considered.” He added that safety was the foremost concern and that the DGCA “is doing an intensive audit” on the airline. “As long as they are safe and they are flying five planes and they have a certain amount of equity, the government cannot close it down.”

He also reiterated that the FDI cap at 49% would remain the same. However, the government will be looking in to allowing other airlines to invest in other carriers. As he pointed out, this is largely a consideration due to banks overextending themselves to the airline sector as a whole.

IE 18JUL12


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