No Decision Taken to Privatise Air India: Civil Aviation Minister

No decision has been taken to privatise Air India, with the government saying it was close to finalising a short-term strategy to strengthen the burgeoning civil aviation sector, including slashing taxes on jet fuel.

"By and large, there is a general feeling that the aviation sector in India is no way near its potential. So we are working on that and trying to achieve that potential. We are working out a short-term strategy, setting some goals for ourselves within the Ministry," Civil Aviation Minister Ashok Gajapathi Raju told reporters.

He was responding to a question whether the ministry had formulated a 100-day plan for the aviation sector after he recently met Prime Minister Narendra Modi.

Asked whether Air India's privatisation was discussed at this meeting, he said the national carrier formed "a substantive part of our discussion".

"All issues relating to Air India was discussed. No decision has been taken and I would not like to stir the hornet's nest," he said.

Mr Raju said the entire gamut of issues concerning aviation was discussed at the meeting on infrastructure taken by the Prime Minister, "but we took no decision".

Civil Aviation Secretary Ashok Lavasa said "a few specific citizen-centric initiatives have been identified".

"We are working on them and will make them known in a few days," he added.

Asked about high sales tax levied by states on aviation turbine fuel, Mr Raju said the issue of state taxes was also discussed.

"We are trying to take various states into confidence on the matter" so that some relief can be granted to the aviation sector, he further said.

"The taxes vary from state to state. On the aviation side, they want the taxes down. We have to talk to the states as we are in a federal structure."

On the issue of air fares, Mr Raju said the government has not interfered with the ticket prices and "every commercial organisation is taking its own decisions".

On the downgrade of aviation safety ratings by the US aviation regulator - Federal Aviation Administration (FAA),  he said, "They have found some deficiencies. We are fortunate that other nations did not find the same thing. But we have to overcome them," adding that steps are being taken in this regard.

Observing that the ministry was taking steps like recruiting qualified aviation specialists in the DGCA to overcome the deficiencies pointed out by FAA, the minister said, "Once we reach that stage, we will ask them for a review. We want to reach that stage as soon as possible."