Leaving the past behind

The world now beckons India’s private airlines. The Union Cabinet has just lifted restrictions that had prevented them from flying international routes. At a specific level, the move signals a new phase in Indian aviation. It also represents, more generally, a strong desire on the part of the Manmohan Singh government to dismantle the mai-baap sarkar of yore, one in which the state decided everything and did everything — including flying aircraft. If the declining fortunes of Air-India is an indication, that policy was completely out of sync with the times. Nations around the world — even the most prosperous ones — are increasingly privatising their aviation sectors and entering into innovative corporate partnerships in the global marketplace. The latest move, therefore, to allow more level playing skies for airlines based in India is a flight path in the right direction.

We cannot, of course, agree with the decision to continue denying the Gulf sector to these operators. The three-year moratorium on these routes amounts to using the brute force of government policy to aid and protect the national carriers while withholding the benefits of these lucrative routes for private operators. We can only be grateful that the government has promised to review these restrictions after three years and hopefully better sense will prevail at that juncture.

India has benefitted immensely from the privatisation of its aviation sector. Last December, the NDA government allowed private airlines to fly to SAARC destinations and the move proved a substantial success. Both the major private airlines, Jet and Sahara, have reported high occupancy on their flights to Kathmandu and Colombo, besides gaining from additional spin-offs like cheaper landing and parking charges. Also disproved was the theory that Indian Airlines operations would be greatly hit as a consequence. The point is that improving international connectivity helps to build critical mass and shores up the business prospects of all the players in the market. The competition for customers forces these companies to innovate, streamline and cut waste, steps that make balance-sheets more healthy. As for passengers, they finally get to exercise some choice. Over time, it becomes a win-win situation all around. As we take off to a New Year, therefore, we can only commend the Union Cabinet’s sagacious decision to leave one part of the past behind.