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Air-India turns corner, to have new image: Hussain

Air-India, the national carrier, has turned the corner after being in the red for seven years and will have a brand new image by the year-end, Minister for Civil Aviation, Syed Shahnawaz Hussain has said.

The airlines, which made a profit of Rs 200 million in 2001-02, after making losses for seven continuous years, will acquire eight aircraft on lease and commence a Delhi-Frankfurt flight from September, Hussain who, is on a four-day visit said in an interview in London on Wednesday evening.

He said the government was trying to make Delhi and Mumbai international hubs on the model of Hong Kong, Singapore and Dubai.

Besides, the government was also trying to attract foreign investment in leasing out the four major airports at Delhi, Mumbai, Chennai and Kolkata, wherein foreign investors would have 74 per cent holding and the rest 26 would vest with the Airport Authority of India, he said.

"The government planned to raise Rs 160 billion by this move," he said.

Spelling out his ministry's ambitious plan to give a new image to 'Maharaja', Hussain said the carrier would have better seats and improved catering service. "We are going to have eight aircraft on lease, mostly Airbus 310."

Hussain also said the government has earmarked Rs 1.12 billion for the development of the airport at Bodhgaya, the Buddhist pilgrimage centre in Bihar, which was added to the list of world heritage centres by UNESCO recently.

The minister, who had a 40-minute meeting with British transport secretary Alistair Darling on Wednesday, also met members of the British Airport Group representing the UK aerospace sector, largest in the world and next only to USA, with an annual turnover of £18 billion.

Welcoming Hussain, Trevor Sidebottom, director of BAG conveyed the interest of British companies in India's aviation sector.

Hussain gave them an overview of India's activities in the airport sector including privatisation, modernisation of existing airports, up-gradation of minor airports and leasing of Mumbai, Delhi, Kolkata and Chennai airports.

The minister who arrived in London on Wednesday on a four-day visit said a new civil aviation policy has been drafted and private sector role enhanced for airport development.

Hussain said he would depute a team of high-level officials later in the year to interact with members of BAG to find out how India could take advantage of their knowledge and experience.

In response to queries about schedule of leasing of the four airports, the minister said the exercise would be completed by end of March next.

He welcomed the involvement of BAG in small airports where there is need for state of the art technology.

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