September 16, 2009 12:59 PM

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Revival plan for national carrier Air India is on track; Ministry to approach cabinet for approving infusion of equity

Civil Aviation Ministry will soon approach the cabinet for approving infusion of equity in AIR India. Talking to reporters on the sidelines of the symposium on cooperation between India and Asia in Aviation sector, Civil Aviation Minister Praful Patel said that the revival plan of the national carrier is on track. He said many steps have been taken in this direction which includes cost cutting, increasing revenue and rationalising routes. Mr. Patel said steps have also been taken to reduce AIR India's high cost debt with low cost debts. Earlier, addressing the symposium Mr. Praful Patel expressed cautious optimism on the signs of revival in aviation sector. Mr. Patel urged private airlines to reduce their costs and focus on low cost carriers as 50 percent of the travelling public has now shifted to this mode of transport. He also called upon airlines to operate through shorter air routes with less congestion. Mr. Patel said that there will be no compromise on the safety in the aviation industry which tops the agenda of his ministry. Reiterating India’s commitment to reduce emission of the green house gases, Mr. Patel said that most modern aircrafts are being used to adhere to the global standards. The Minister said that the government has embarked on a massive plan to built infrastructure in the aviation sector. Our correspondent reports that the representatives, aviation experts and policy makers from 36 countries are participating in the deliberations to prepare a road map for better economic regulation and liberalisation of air traffic besides opening up of the sky.

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