New norms for airlines to be implemented next year
New Delhi: The Union Government will review the norms governing domestic airlines to fly abroad next year. The policy review may begin after the process for the merger of Indian and Air India begins, sources said.

According to a Union Cabinet decision taken on December 2004, private sector airlines that had a minimum fleet of 20 aircraft and completed five years of domestic operations were allowed to operate flights to most parts of the globe except the Gulf region. The moratorium on private airlines flying to the Gulf region is to be in place till early 2008 during which time only Air India, Indian Airlines and their subsidiaries will be allowed to operate flights to the region, namely, United Arab Emirates, Qatar, Oman, Bahrain, Kuwait and Saudi Arabia.

The Cabinet decision allowed Jet Airways and Air Sahara to start operations to various parts of the globe. Currently, Jet Airways has flights to the UK, Sri Lanka, Malaysia, Singapore and Nepal and Air Sahara operates flights to Nepal and Singapore.

The proposed move to allow Indian private sector airlines to fly abroad could help tilt the balance in India's favour as Air India's market share has fallen to 19 per cent during 2005 from 30 per cent in the 1980's.
Back to News Review index page  

Inflation rises to 5.3 pc
New Delhi: The annual wholesale price index-based inflation rose 5.30 per cent during the week ended November 4, higher than the previous week's annual rise of 5.09 per cent. The increase in the year-on-year inflation was mainly on account of higher prices of food articles and manufactured products, Government data showed on Friday.

During the latest reported week, the Wholesale Price Index (WPI) for all commodities ended at 208.8 points. The WPI index was at 198.3 points a year ago. The annual inflation rate was 4.04 per cent during the corresponding week of the previous year.

On a disaggregated basis, the Primary Articles' group index was up 0.4 per cent to 214.2 points as prices rose for food and manufactured items. The index was at 200.6 points during the same period a year ago. The Fuel, Power, Light and Lubricants' group index remained unchanged at the previous week's level of 329.5 points.
Back to News Review index page  

Manufacturing sector may open up further
New Delhi: To quicken economic development, Prime Minister Manmohan Singh said the manufacturing sector may open up further.

Dr Singh said manufacturing should be liberalised domestically also to create a more enabling environment. He said the Indian economy was open for participation, and there are enormous opportunities to invest today.
Back to News Review index page  

Oil falls to lowest level since June '05
London: Oil prices fell to $55 on Friday, hitting its lowest level since mid-'05 driven by fund selling across commodity markets on concern of an economic slowdown in the world's largest energy consumer the US.

On Friday, US crude was down 44 cents at $55.8 a barrel, after hitting its lowest level since June 14 last year at $54.9. The price fell nearly 30 pc from the record of $78.40 in July. London Brent crude rose 11 cents at $58.7 a barrel.

Base metals also slid on concern that if the world's largest economy slows, global demand for raw materials would also suffer. London copper prices slid to their lowest levels since June on Friday. US industrial output data for October on Thursday was weak, showing signs of a cooling economy.

Opec producers agreed last month to cut supplies by 1.2m barrels per day (bpd) from November 1.
Back to News Review index page