Don’t see stimulus for aviation in Budget: Praful Patel
With the Budget nearing, each sector is expecting some kind kind of stimulus or help to pull itself out of the slowdown that it witnessed in the global financial crisis. What’s in it for aviation — another beleaguered sector? Union Civil Aviation Minister Praful Patel, in an exclusive interview on CNBC-TV18, said he did not expect much for aviation as a sector in the upcoming Budget. However, he added that one could expect something for Air India in the Budget. “Air India initial public offering (IPO) can happen by the second half of 2010.”
He further said there was no need for the government to help run private airlines. “Airlines must tighten their belts,” he said, adding that the business models needed to change. “All airlines need to redraw their business models.” Patel further said that a decision on allowing foreign airlines to invest in Indian aviation was on the cards.
Raising an ongoing problem, he said that the states would need to come on board for aviation turbine fuel (ATF) to get declared good status. “I don’t think this Budget is going to be decisive on the declared goods status, not because of any other reason or not that the central government is unwilling, but the fact is you cannot do it without taking the states on board.”