Freedom to fly

By this privilege,AI has enjoyed the lone right to the entire seat capacity agreed between India and a second country,called bilaterals. Private carriers were left to pick up the crumbs AI would leave them. However,that doesnt mean AI did justice to its monopoly. Far from it,75 per cent of flying rights on profitable routes such as the Middle East remain unutilised. For Dubai,the most profitable route,the figure is 44 per cent. In Europe,only 10 per cent of the capacity is utilised and 95 per cent of the market left to foreign carriers. No Indian carrier flies to Spain,Denmark,Norway,Sweden and Switzerland. For ASEAN,the Far East and the Asia-Pacific,foreign carriers make up 55 per cent of the market. If thats what AI has been doing with its right to first refusal not being able to service its given capacity and not letting others in either the government was wrong to withhold approval for the approximately 50,000 overseas seats private airlines had sought last year.

Liberalising international flying rights and thereby levelling the field needed urgent attention. Instead of continuing to protect loss-making AIs interests,the civil aviation ministry ought to carry through its proposal. AIs losses for 2010-11 amounted to Rs 6,994 crore and its debt burden is around Rs 44,000 crore. In April-September last year,AI met total costs on only two of its 175 domestic and foreign routes. AI needs disinvestment and downsizing,not perverse privileges. The space thus freed up could be better utilised by those with the eagerness and resources to use it.

Curated For You

Dhurandhar Day 28 Box Office Collection Worldwide Update: Ranveers film makes Rs 784.50 cr, continues box office supremacy despite Ikkis release

Complained for days, but no one listened: Kailash Vijayvargiya confronted at ground zero of Indore water contamination

Howrah-Guwahati Vande Bharat Sleeper train: Check launch date, route, stoppages, ticket price, food menu