The airline, which has invested a whopping $ 1 billion to set up India's most profitable private airline, is completely depended on the international credit agencies for debt finance. ``Despite all the negatives, our airline has been able to raise funds from US Exim and other financial institutions at a rate which is as competitive as any other foreign airline. The loans were granted to the airline without a guarantee from the Indian government,'' Goyal told this newspaper soon after relaunching its frequent flier programme here today.

``All over the world, airlines are considered a vital infrastructureto connect different parts of the country to promote trade and industry and tourism... Indian airline industry needs more incentives to grow and provide more accessibility to its passengers,'' he said.

Goyal said in the forthcoming aviation policy, the government should provide a level playing field between the state-run airlines and private airlines. ``We have to pay far higher rate for aviation turbine fuel while foreign airlines and Air India pays lower rate for the same ATF in India... removal of these anomalies will help us to reduce costs and we can pass on the benefits to the passengers as reduced fares,'' he said. ``As the margins in the airline industry is very low, granting of infrastructure status will improve bottomlines.''

The airline, with a fleet size of 25 Boeings, has envisaged yet another expansion of 10 aircraft at a cost of $ 500 million. ``The entire funds for expansion will be tied up with the foreign FIs and due to high interest rates prevailing in India we are avoiding debt fromthe domestic institutions, Goyal said.