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This is an archive article published on December 27, 1999

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Misplaced FactsAbhijit Bhattacharyya's article Air-India Virgin Adventure, The Indian Express, December 16 issue is a combination of...

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Misplaced Facts
Abhijit Bhattacharyya8217;s article 8220;Air-India Virgin Adventure, The Indian Express, December 16 issue is a combination of misplaced facts and rhetoric about the recent Air-India-Virgin Atlantic partnership. This partnership, based on code share CSA/block space BSA arrangements, is no different from nine similar agreements Air-India has signed in the past three to four years with diverse airlines such as Singapore Airlines, Asiana of Korea, Kuwait Airways, Swissair, Austrian Airlines, United Airlines and so on.

In view of Air-India8217;s limitations of fleet size, a CSA/BSA entails the operation of the partner8217;s aircraft with an Air-India flight number code share and a block of seats which Air-India can sell at a predetermined price. The Air-India/Virgin Atlantic arrangement is, in fact superior, to CSA/BSA arrangements with other airlines since it entails only usage of Air-India8217;s unutilised rights whereas in other cases such arrangements had led to granting of additionalrights.

Abhijit Bhattacharyya appears to be disappointed with the Virgin Atlantic tie-up coming close on the heels of Air-India8217;s withdrawal from some European stations. He must realise that Air-India which recorded enormous losses in three years up to 1997-98 has now stabilised its financial position and has even recorded operating profits in some months of the current fiscal.

An important contributory factor in this transition has been the adoption of the industry practice of route rationalisation by withdrawing from routes which do not cover cash costs of operation. It is pertinent to mention the withdrawal of mega airlines like United Airlines and Air Canada from the India route in recent months due to similar reasons. To link this withdrawal with the Virgin Atlantic pact is not only unnecessary but also entirely irrelevant.

Abhijit Bhattacharyya has further sought to link the Virgin-Air-India pact with blocking Indian Airlines avowed desire to operate to Europe on routes from which we havewithdrawn.

If Indian Airlines wishes to operate to Europe, they are most welcome to do so and Air-India has no say in such matters. Decisions of such nature are taken by the Ministry of Civil Aviation, which Abhijit Bhattacharyya should be aware of since he has worked in the Civil Aviation Ministry on deputation from his parent Customs Service, in the early 1990s.

Abhijit Bhattacharyya8217;s claim that our Managing Director, M. P. Mascarenhas is more at home with Lufthansa, Alitalia and British Airways rather than India Airlines defies imagination.

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Abhijit Bhattacharyya is perhaps oblivious of the fact that it was the same Mascarenhas who was instrumental in promoting joint venture Air-India/ Indian Airlines services from Kerala to the Gulf, in setting up a joint frequent flyer programme and a joint participation in the computerised reservations system, apart from other marketing schemes, with its sister airline.

The author is Director, Public Relations amp; NMD

 

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