Saturday, January 12, 2008

Air India IPO Likely In Second Half Of '08: Patel

NEW DELHI: The government is planning to divest 10% to 15% stake in Air India through a public issue in the second half of 2008. The IPO for the public sector airline has been delayed due to the merger of Air India with Indian to form National Aviation Company (NACL).

Speaking at a meeting here on Friday to announce the launch of India aviation 2008, the first-ever civil aviation air show in the country, civil aviation minister Praful Patel said the government was keen to list Air India and raise funds for expansion of the company.

Mr Patel said the government plans to revive 300 airstrips which are not in operation now. The move is expected to provide connectivity to semi-urban areas and also help corporate houses who are keen to develop supply chain for their retail operations.

The airshow announced by Mr Patel is scheduled to take place in October this year in Hyderabad.
The civil aviation minister said revival of unused airstrips would be taken up along with other issues like lowering cost of fuel through tax reductions.

“We would meet the state representatives next week and discuss issues such as sales tax on aviation turbine fuel (ATF) and aviation infrastructure. We would also discuss how unused airstrips can be turned into operational one by engaging private players,” Mr Patel said.

The minister expressed the hope that sea-planes would enter the Indian aviation scenario this year. “If a small country like Maldives can have 25-30 sea-planes connecting small islands, why can’t it operate in India which has a vast sea coast.”

No comments: