Patel denies AI rumours; forms body to solve aviation woes

Published on Fri, Oct 17, 2008 at 11:16 |  Source : CNBC-TV18

Updated at Fri, Oct 17, 2008 at 21:36  

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Praful Patel, Civil Aviation Minister

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Civil Aviation Minister Praful Patel denied reports that Air India is laying off staff  saying that no such retrenchment move was on at the government-owned airline carrier. "This (news about the layoffs) is unfounded. I assure everybody that not a single employee of Air India is going to lose his or her job. So there is no issue, neither has the management said that they will retrench the staff," Patel said. On the contrary, the government is looking to infuse more equity into the national carrier, the civil aviation minister added.

 

Patel also said that a new committee will be constituted under the chairmanship of the Cabinet Secretary. The committee will look into the liquidity and operational problems plaguing the aviation sector.

 

Patel added that prices of aviation turbine fuel are higher in India than the global rates and will need to be brought down.

 

On the issue of Jet Airways laying off 1,900 employees - as a cost-cutting measure - and their subsequent reinstatement , Patel said that he had called up Jet Airways Chairman Naresh Goyal to request him to take back the sacked employees. "I am happy that sense has prevailed," Patel said.

  

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