The government is considering a proposal to allow Alliance Air, a subsidiary of Indian Airlines, to lease new aircraft to replace its ageing fleet, Minister of State for Civil Aviation Rajiv Pratap Rudy said on Monday.

"A proposal for Alliance Air to replace its ageing fleet through the leasing route is under consideration of the government," he told reporters on the sidelines of an open house session with all concerned agencies at the Indira Gandhi International Airport in New Delhi.

Indian Airlines and Air-India are already proceeding with plans to expand and replace their fleets.

To questions regarding modernisation of Delhi and Mumbai airports, he said, "we are going as per the planned schedule and will select the financial consultant on November 14" when the next meeting of the empowered committee of the Group of Ministers on airport privatisation would be held.

The government was also considering giving productivity-linked incentive (PLI) to the employees of Indian Airlines, but the airline board would take a final decision, Rudy said.

He, however, refused to elaborate on the scheme, saying, "The employees will have to work more to earn more."

IA staffers have been demanding PLI for all sections of employees.

The open house session witnessed slogan-shouting by Airports Authority of India employees, who were protesting against privatisation of the two metro airports and demanding that the Airports Authority Employees Union be taken into confidence on the entire issue.

Rudy spoke to the agitating AAI staffers in an attempt to allay their apprehensions about privatisation and later met the AAEU leaders.

Asked whether there were plans to introduce helicopter services for connecting the airports in Delhi and Mumbai to the respective city centres, Rudy said while the plan for Mumbai was under consideration, there were a lot of security problems in Delhi.

He said a new regulatory framework was being evolved for chopper operations in the country as the helicopters till now have to share the normal air routes and do not have separate route or landing space.

The minister said steps to synergise airspace management were being worked out with the defence ministry like in other countries which had "common-flexi airspace" for defence and civilian use.

On reducing taxes on aviation turbine fuel, he said discussions between civil aviation and finance ministries as also with the state governments were continuing on the issue to make aviation affordable to the people.

At his elaborate speech during the open session, Rudy pointed out that only 24 million people travelled by air in India compared with a total of 1,638 million worldwide.
             
He exhorted the service providers -- ranging from airport and airline staff, to security, customs and immigration to hoteliers, taxi services, tours and travel agents, duty-free
shops -- to be more customer-friendly in order to develop 'Brand India'.

Pointing out that increased competition in the aviation sector would make the players more stronger, Rudy said, "Indian Airlines has not closed down despite competition at home for over a decade now, though fears had been expressed to this effect earlier."