Regulatory body for airports soon

Government is considering setting up an airport economic regulatory authority to deal with tariff and service standards at airports, Civil Aviation Minister Praful Patel informed the Rajya Sabha on Tuesday.

Setting up the regulatory authority would require a legislation, he said in a written reply.

The Directorate General of Civil Aviation will continue to look after other regulatory functions, he added.

However, Patel said there was no proposal to establish an independent civil aviation authority to oversee the civil aviation sector.

He said the government has approved Indian Airlines' proposal to acquire 43 aircraft comprising 19 A-319, four A-320 and 20 A-321 manufactured by Airbus Industries with engines from CFM international.

Pursuant to the approval, Patel said final negotiations with the lowest bidder have been initiated and an inter-disciplinary team of IAL is undertaking negotiations under the overall supervision of an 'oversight committee'.

As far as acquisition by Air-India is concerned, the minister said, in November, 2004, Air-India board approved a fleet acquisition plan for the period up to December 20, 2013.

The plan envisages the acquisition of 18 X B737-800W aircraft for its new airline subsidiary Air-India Express and 50 aircraft for Air-India, he said.

While a project report for the acquisition of 18 B737-800 aircraft have been submitted to the government for approval, Air-India has invited offers for the 50 aircraft, the civil aviation minister said.