This Article is From Aug 08, 2009

Praful meets Prime Minister, discusses aviation crisis

Praful meets Prime Minister, discusses aviation crisis

AP image

New Delhi:

Prime Minister Manmohan Singh on Saturday lent a "sympathetic" ear to the problems faced by airlines, but no decision on helping them was taken at a meeting he had with Civil Aviation Minister Praful Patel.

Patel also briefed the Prime Minister on the constitution of the Air India Board, which is expected to comprise eminent personalities and professionals to guide the national carrier out of its financial trouble, an official spokesperson said.

While an "early decision" on setting up of the new Board was expected, she said the Prime Minister was also "supportive" of the airline's demand for equity infusion. The airline currently has an equity base of only Rs 145 crore but has placed orders for 111 aircraft worth Rs 50,000 crore.

The Prime Minister was "very sympathetic" to the problems faced in general by the sector, which has been protesting the high rates of sales tax imposed by various state governments on aviation turbine fuel. Airlines have also been seeking lowering of airport charges.

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