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This is an archive article published on May 3, 2005

Non, it146;s a deal

The transatlantic tussle has shifted continents and the next confrontation may well take place at the Chief Vigilance Commissioner8217;s do...

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The transatlantic tussle has shifted continents and the next confrontation may well take place at the Chief Vigilance Commissioner8217;s doorstep in New Delhi. Airbus, the France-led consortium, is incensed that it lost the Rs 30,000 crore contract for reinforcing Air India8217;s fleet to that flying symbol of American hegemony, Boeing. Word is still not out whether Jacques Chirac has been requisitioned to have the Assemblee Nationale to take note of the issue, but hints from Airbus headquarters in Toulouse, are that this strident assertion of American unilateralism will not be tolerated. An US company will not be allowed to wing the Air India deal without a flutter on the streets of New Delhi. In this dogfight, at stake is presumably nothing less than an assertion of a multi-polar world.

Europe, with France always in the lead, has since the 1960s been extremely sensitive to shakeouts in civil aviation. It responded to rising bottomlines of American aviation majors 8212; once a grand troika of Boeing, Mcdonnell Douglas and Lockheed 8212; the staple European way: by pumping in subsidies to shore up a local competitor. America, they said, had massive domestic demand to keep its civil aviation sector viable 8212; Europe8217;s flag must float on government aid. That is, if egalite cannot be won by the invisible hand of the market, continental pride must be secured through state intervention. It then is, one supposes, just a leap of logic to demand that other governments also be inducted into this spirited battle against American imperium. If the market mechanism cannot deliver the deal to Airbus, the Indian government must. If no violation of fair trade protocols can be proved, the brains trust in Toulouse clearly feels, seeds of a spicy scandal can neatly be planted.

Not so fast. This is where New India must firmly tick off Old Europe with a firm and resounding 8220;non8221;. India is slowly, and hopefully surely, on the way to massive programme of upgrading infrastructure. It cannot have it skies emptied of reinforcements just because European companies have lost out on a piece of the pie. The transatlantic battle is best returned to its natural habitat: at the portal of a fast food outlet on the Champs Elysees.

 

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