Smooth landing for airlines

Praful meets Deora, gets EMI breather on fuel bills

NEW DELHI:In view of the financial crisis being faced by the Indian airlines industry, the Minister for Civil Aviation, Shri Praful Patel recently met the Minister for Petroleum and Natural Gas, Shri Murli Deora. Senior officials of Ministry of Civil Aviation, Ministry of Petroleum and Natural Gas, the oil PSUs and representatives of the airlines industry were also present.

It was decided at the meeting that:

• A 90 days credit period will be given by the oil companies to the airline companies up to 31 March, 2009 following which the situation will be reviewed to pay their credit.

• The airlines industry can pay their present cumulative outstanding credit in 6 monthly installments by 31 March, 2009.

• The ATF prices will be revised every 15 days to be at par with the world market prices. This is in view of the fluctuation prices of crude oil in the international market.

In view of the support extended to the airline industry by the Government and the oil PSUs, the airlines were asked to refrain from any retrenchment of staff. At the meeting it was also clarified that the national carrier Air India was not laying of any employee. The CMD, NACIL assured that the company had no plan of retrenchment of any of their employees.

The Indian airline industry representatives have expressed their satisfaction to the Minister for Petroleum and Natural Gas and Minister for Civil Aviation for their initiative in providing relief to the sector.