...

india - ICAO

by user

on
Category:

government

8

views

Report

Comments

Transcript

india - ICAO
INDIA
LIBERALIZED AIRLINES
OWNERSHIP & CONTROL
DR. SANAT KAUL
REPRESENTATIVE OF INDIA TO
THE COUNCIL OF THE ICAO
MONTREAL, 22ND MARCH,2003
BACKGROUND
*1920: Beginning of the aviation sector in India.
*1929: JRD Tata, recipient of the ICAO Edward
Warner Award in 1986, launches the first private
airline in India.
*1947: India wins Independence.
*1948: ‘Air India International Limited’, formed as
joint venture with the Government of India
holding 49% equity.
*1949: Air India International begins regular flights
between Bombay and London.
2.
NATIONALIZATION OF AIRLINES
*1953: Parliament enacts the Air Corporation Act,
1953 creating two independent airlines;
“Air India International Ltd ” the international
carrier &
“Indian Airlines Ltd” a largely domestic carrier;
*Private airlines not allowed to function in the
domestic sector.
*Registered foreign international airlines permitted
to enter India.
3.
INDIA LIBERALIZES HER ECONOMY
*1990: The Government of India decides to
deregulate her command economy structure by
bringing in far reaching reforms.
*1991: Liberalization of the aviation sector.
* The Air Corporation Act, 1953 repealed paving
the way for the opening up of the domestic sector
and the disinvestment of the two public sector
airlines.
* New privately owned domestic airlines start
functioning.
4.
AIR CARGO POLICY
*1991: India declares unilateral policy of ‘open sky’
for international air cargo :
* Any foreign operator permitted to carry cargo to
and
from
India,
without
restriction
on
the
number of flights and types of aircraft, to any
airport in India with customs and immigration
facilities, even without the existence of bilateral
agreements.
5.
AIR CARGO POLICY (cont.)
* No requirement to comply with national ownership
of aircrafts/company norms.
* ICAO gives due credit to India in Working Paper
10 of the 5th. World Wide Air Transport
Conference beginning in Montreal on Monday,
the 24th of March. We appreciate ICAO’s gesture.
6.
MANAGEMENT & CONTROL OF
AIRPORTS
*1971: All airports in India came under
management & operation of two Government
Authorities.
*1985: All airports were brought under a single
Authority, the Airports Authority of India (AAI)
by Act of Parliament.
*The regulatory control of civil aviation, however,
continues to remain with the Directorate General
of Civil Aviation.
7.
MANAGEMENT & CONTROL OF
AIRPORTS (cont.)
*Proposal to lease metro airports to international
operators to bring them in line with world class
airports.
*Federal Budget 2003 announces tax holidays to
such infrastructure companies.
8.
GREENFIELD AIRPORTS
*Greenfield Airports opened up to the private sector
at :




9.
Cochin :
Bangalore :
Hyderabad :
Goa :
operational
under construction
under bidding
under planning
DISINVESTMENT OF AIR INDIA
& INDIAN AIRLINES
*1999: Government of India sets up the
Disinvestment Commission to recommend the
disinvestment of Public Sector Undertakings.
*Disinvestment Commission recommends
disinvestment of Air India & Indian Airlines.
the
*2000: Cabinet approves proposal
disinvestment of both airlines.
the
10.
for
APPROVED PROPOSAL FOR AIR INDIA
* Government to divest 60% of its equity holding
in the following manner:
40% to be divested in the hands of the
Strategic Partner as under:
(a) Up to 26% to be held by the foreign
airline/partner &
(b) Balance of 14% or more to remain in
the hands of the Indian Partner;
11.
APPROVED PROPOSAL FOR AIR INDIA
(contd.)
*Government to further divest 20% as under:
(a) Up to 10% equity in the hands of the
employees as stock-options through the
instrumentality of a Trust (SPU)
created only to facilitate the process;
(b) Balance equity to be sold to the public
in open offer.
*Government to be left with an equity of
40%,making Air India a Private Limited Company
under the Indian Companies Act,1956.
12.
APPROVED PROPOSAL FOR
INDIAN AIRLINES
* Government to divest 51% shares in the
following manner:
26% shares to be divested in favor of either an
individual or a group of individuals who are
citizens of India, to be called Strategic Partner/
Joint Venture Partner;
*Of this up to 10.4% as foreign equity & balance as
domestic equity
*Government to offer balance of 25% shares to
Employees, Financial Institutions & the Public.
13.
APPROVED PROPOSAL FOR INDIAN
AIRLINES (cont.)
*Thus the Government to be left with an equity of
49%, making Indian Airlines a Private
Limited Company under the Indian
Companies Act, 1956.
*Foreign Airlines not permitted to participate
directly or indirectly, in the disinvestment
process of Indian Airlines.
14.
PROCEDURE FOR DISINVESTMENT
2000: Global Advisors appointed for both Air India
& Indian Airlines to formulate the modalities
of the actual disinvestment process.
*
*Global advisors seek “expressions of interest” to
identify prospective Strategic Partners, elicit a
good response.
*Cabinet approves the Share-Purchase Agreement
& Shareholders Agreement.
15.
PROCEDURE FOR DISINVESTMENT
(cont.)
*‘Security Clearance’ for bidders of Indian Airlines
not accorded by Government.
* Air India gets one bidder.
*Events of 9/11 overtake the disinvestment
process.
*The commitment to disinvestment continues.
16.
CONCLUSION
*The success of the “open sky” policy in the first
phase of economic reforms in the domestic
aviation sector, international cargo, airport
infrastructure &
*The opening of the Airports sector with new
‘Green field Airports ’to the private sector,
a matter of satisfaction to us.
* The Disinvestment of shareholding in the two
public sector airlines still remains to be
completed.
17.
is
CONCLUSION (contd.)
*However, all steps to accomplish the disinvestment
have been taken in a transparent manner
following due process & procedures.
*It is unfortunate that world events, particularly 9/11
which has affected the aviation sector world
wide in such a catastrophic way has meant that
the disinvestment process of Indian Airlines &
Air India has had to be held back before
completion.
18.
THANK YOU
Fly UP