Full autonomy for I-A, A-I, assures Aviation Minister

MUMBAI, May 20: Union Civil Aviation Minister Ananth Kumar has assured full autonomy to Air India and Indian Airlines adding that a decision...

MUMBAI, May 20: Union Civil Aviation Minister Ananth Kumar has assured full autonomy to Air India and Indian Airlines adding that a decision on the Kelkar Committee recommendations on turnaround strategy of the domestic carrier would be announced shortly.

While the government would take a “definite view” on the IA report, the report on Air India is expected in three weeks, the Minister told mediapersons after a review meeting of the international carrier at its headquarters here.

Asked how soon a decision on the Kelkar Committee report would be taken, the minister said, “We are examining the report with an open mind. A similar assessment will be made of the AI report”.

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According to sources, Kumar, during the meeting with heads of departments assured government support for whatever decisions are taken if they were good for the airline. One suggestion made during the presentation was part privatisation of the airline, sources added.

The Kelkar Committee has recommended capital injection of Rs 922crore, which includes compensation for grounding of A320s and reducing government holding to 49 per cent.

On the turnaround strategy for Air India, he said it could turn around in two years time and assured that a strategy was on the anvil.

Air India had suffered losses in 1995-96 to the tune of Rs 272 crore, in 1996-97, Rs 296 crore, and in the first six months of the financial year of 1997-98, Rs 102 crore. The airline is now facing accumulated losses to the tune of about Rs 675 crore in the last 30-month period. The company has undertaken various steps to stop this financial haemorrhage.

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Asked if fleet expansion plans were on, the Minister said AI should have done that in its normal course as it cannot continue with old aircraft.

Air India sold two of its aged Boeing 747-200s in February and two more are up for sale. In replacement of these four aircraft, the board has already approved the dry lease of three Airbus A320s. The airline is also exercising an option to acquire the seventh Boeing747-400.

Kumar, who was accompanied by civil aviation secretary, M K Kaw, joint secretary Anil Baijal and Joint Chairman P C Sen, congratulated the airline for its quick response in airlifting over 1000 Indians from Indonesia during the past four days.

He said the policy of the government was to create regional hubs and make flying safer, punctual and user-friendly. Kumar said he had already carried out a review of the Airports Authority of India and IA.

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