To increase air connectivity to tier-II and tier-III cities in the country, the Union Government has decided to set up 50 new low-cost airports this year and 50 next year. The government is striving to achieve this within the deadline set up by the Prime Minister Manmohan Singh.
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Air India concerned over FDI in aviation
Indian State-owned Air India has warned the Union government that allowing investments by foreign airlines will hurt the interests of domestic airlines and prevent Indian airports from developing into international hubs. The government should study the potential impact of such investment on the domestic aviation sector as a whole, Chairman and Managing Director (CMD) Rohit Nandan wrote in a letter to Aviation Secretary KN Srivastava in December, sources said.