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This is an archive article published on June 29, 2012

Beyond Air India

When will Minister Ajit Singh tune in to the larger toll the AI mess is taking on civil aviation?

When will Minister Ajit Singh tune in to the larger toll the AI mess is taking on civil aviation?

The ongoing,almost two-month-old strike by the de-recognised Indian Pilots Guild is taking an unacceptable toll. Its perhaps time the Competition Commission of India is brought in to look into the damage wreaked on the aviation sector,apart from the losses suffered by taxpayers whose money the government has been wasting for so long,both through its limitless largesse to AI and its inexhaustible tolerance as it loses over Rs 10 crore a day while the strike goes on. Its time there were some penalties for perpetuating the malaise by backstopping the so-called national carriers losses through bailouts and continuing to deny a level-playing field to eager private carriers at a time when the civil aviation sector is in trouble.

Civil Aviation Minister Ajit Singh,who had temporarily found his voice,had attached caveats to the generosity bestowed on AI,such as maintaining 90 per cent on-time performance,73 per cent passenger load and improving yields. The government had also decided to do away with AIs monopoly over bilaterals and its right of first refusal. With private airlines left for long to pick up the crumbs,75 per cent flying rights remained unutilised on the profitable Middle East route,while in Europe,for example,Indian carriers used less than 10 per cent of the permitted capacity. Meanwhile,AI is the only Indian carrier flying directly to the US,although the India-US open skies agreement was inked as long ago as 2005.

Ajit Singh had implored striking pilots to see the bigger picture,but he seems to be missing it himself. Even as he wastes taxpayers money on AI,the civil aviation sector is reeling from increasing fuel costs,a falling rupee and a climbing debt burden,with Indian airlines incurring losses amounting to approximately Rs 10,000 crore in FY2011-12. The larger civil aviation crisis should occupy the ministers time,prompting pragmatic policy. This must be the imperative before the minister,not attending to wishlists of pilots who call themselves blue-collar workers even as they earn,as the Dharmadhikari report illustrated,more than their counterparts in domestic and some international airlines.

 

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