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This is an archive article published on December 7, 2003

Missing the flight

THE display board at any international airport tells the story. Indian carriers hardly appear in any of the lists. Barring the post-midnight...

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THE display board at any international airport tells the story. Indian carriers hardly appear in any of the lists. Barring the post-midnight rush when foreign airlines operate, flights out of India are not very frequent. And Indian carriers, do they fly at all?

Sample this: India has air bilateral arrangements with 93 countries8212;treaties permitting countries to operate equal number of flights on a reciprocal basis. A staggering 71 of these bilaterals lie unused by India, 53 of which have been deemed unprofitable by Indian carriers, 18 are profitable but are not in use see graphic.

This leaves just 22 countries to which either Air India or Indian Airlines operate their own flights. Incidentally, 52 of the 93 countries that India has bilateral arrangements have regular flights to India.

This was not always the case. Back in the 1970s, 40 per cent of the international air travel business in the country was cornered by Air India. At present it8217;s down to 21 per cent. Over the past three decades, the Maharaja has dropped 35 destinations from its list. Places like Aden, Amsterdam, Cairo, Rome, Geneva and Sydney see graphic no longer figure in AI flight plans.

India has been reduced to squabbling for seat-sharing arrangements with foreign airlines coming into India. Indian carriers blame the government for dragging its feet on acquiring new planes.

Considering that Air India in the 1970s was hired as consultants to set up the then newly announced Singapore International Airlines SIA, the journey towards reforms in the civil aviation sector has clearly travelled in reverse gear. SIA today connects 90 cities in 40 countries. Indian carriers, meanwhile, have shrunk in size and stature, facing now the threat of being eased out of the global market. The absence of a clear-cut civil aviation policy has paved the way for arbitrary decisions. The principle of reciprocity 8212; which means that both sides will have equal penetration to each other8217;s markets 8212; in air bilateral agreements have been virtually thrown out of the window.

There has been an addition to the capacity of international airlines without a corresponding benefit to Indian carriers. Nearly 44,000 seats a week have been added since 2001 to the capacity of foreign airlines by way of renegotiating these agreements, which is a staggering 28 per cent increase.

Some examples:

8226; Oman 2001 8212; Granted permission for extra 1,000 seats a week and allowed to touch Kochi. In return, India got Salaah as an additional point in Oman which is of no commercial value.

8226; Singapore 2001 8212; SIA Allowed to fly to Kochi with an additional 640 seats a week.

8226; Malaysia 2002 8212; Granted an additional 2,400 seats a week, 400 more seats were added in June for no reciprocal benefit.

8226; Dubai 2002 8212; Permitted to fly to Kochi.

8226; Gulf Air Owning States 2002 8212; Allowed to fly to Kochi with 607 seats a week.

8226; Qatar 2002: Hyderabad added as an extra point with additional 500 seats capacity.

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Civil Aviation Minister Rajiv Pratap Rudy says the Government is doing its best to change the scenario. 8216;8216;We are trying to speed up the process of strengthening the fleet of national carriers. And as for foreign airlines, they enter into commercial agreements with our airlines, the Government has nothing to do with it.8217;8217;

But industry sources feel that this only indicates the urgency for a policy statement on these issues. While the Government has now allowed private carriers to fly to Colombo, it is not clear whether this is a policy decision and if so, will these airlines also ply on the same sectors as national carriers or would they fill up the unused air bilaterals.

8216;8216;Time is running out. If the Government doesn8217;t decide fast, Indian carriers 8212; national or private 8212; will find it difficult to compete in a global market. Put simply, the competition will kick us out of the market,8217;8217; says a senior airline official.

 

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