Aviation panel to meet today to examine industry's problems
14 Aug 2008, 1032 Hrs

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New Delhi, Aug 14 (ANI): Following the financial crisis due to the rising fuel prices, the Cabinet Secretary will chair a maiden high-level committee meeting today to look into the problems faced by aviation industry.

Constituted by Prime Minister Manmohan Singh on July 9, the panel will recommend measures for sustained growth and healthy development of the industry.

Indian air carriers have jointly suffered an estimated loss of Rs 4000 crore last year, which is expected to double in this fiscal.

Some of the panel members are: Secretaries of the Ministries of Finance, Civil Aviation, Revenue, Petroleum and Natural Gas and the Planning Commission, IDFC Chairman Deepak Parekh and IIM Ahmedabad Professor, Dr Raghuram.

The committee will examine and assess the financial difficulties and study the global scenario and practices followed by other governments and airlines to ensure that the experience of 1990s when several Indian airlines closed down does not recur.

According to International Air Transport Association (IATA), nearly 24 airlines the world over have folded up in the past six months mainly due to rising operational expenses stemming from high fuel prices. (ANI)