Private airlines need to deal with issues on their own: Suresh Prabhu

Amid Jet Airways facing turbulent times, Civil Aviation Minister Suresh Prabhu has made it clear that private airlines have to deal with issues facing them on their own and the government's role can only be at the policy level.

The minister's comments come at a time when the airline industry is grappling with tough times as high oil prices and stiff competition are crimping the profitability of carriers.

When asked about the current situation at Jet Airways, Prabhu said, "We are not aware about their position."

The full service carrier, which has been flying for over 25 years, is facing financial woes. Earlier this month, it also deferred the announcement of June quarter results. The airline's share price has taken a beating in recent weeks.

"We are not aware about their (Jet Airways) position. As far as private airlines are concerned, they will have to deal with whatever issues they are dealing with. At the Ministry of (Civil) Aviation we can only deal at the policy level, Prabhu told PTI in an interview.

DoT, not Commerce Ministry, to decide on Idea's 100% FDI proposal: Prabhu

The telecom ministry is the competent authority to take the final call on Idea Cellular Ltd's proposal for infusing 100 per cent foreign direct investment (FDI) in the company, Commerce and Industry Minister Suresh Prabhu has said.

The Department of Telecom (DoT) has put some condition while seeking views of the Department of Industrial Policy and Promotion (DIPP) on the proposal.

"The matter is completely in the domain of the line ministry. We have already clarified. No need of our approval," Prabhu told PTI In an interview.

It was communicated to DoT that they are the competent authority to deal with the proposal, he said.

"We have sent back (the proposal) immediately. We have stated that it is for you to decide," he said, adding that tax liabilities do not constitute additional condition.

Idea's proposal assumes significance against the backdrop of pending merger with Vodafone India to form the country's largest telecom operator.

The FDI policy allows an overseas firm to buy up to 49 per cent stake in an Indian telecom company under automatic approval route. But the government approval is required for stake above 49 per cent.

Idea and Vodafone announced last year that they would combine their operations to create the country's largest telecom operator worth over $23 billion, with a 35 per cent market share.

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