Sarkari ticket

The Indian civil aviation sector is not enjoying the best of times. Air Indias losses for 2010-11 amounted to Rs 6,994 crore and its debt burden stands at approximately Rs 44,000 crore. Kingfisher,with a loss of Rs 1,027 crore in 2010-11 and a debt burden of Rs 7,000-plus crore,has been trying to raise capital. Last November,Mallya was looking for short-term funds of about Rs 700-800 crore from banks as working capital,denying all talk of seeking a bailout from government. However,where has the idea of state governments underwriting seats come from if not the bottomless impudence demonstrated by Air India,with its non-stop demand for more largesse and recent proposal for free tickets for the extended families of its current and former senior officers? Thats to say nothing of the frequent strikes by its staff. If Kingfisher takes a leaf out of Air Indias book in seeking some of the state largesse,where does that leave the aviation sector and the tax payer?

A course correction for aviation must rest on the no-go of bailout. Civil Aviation Minister Ajit Singh,in fact,should follow up on his bold and reformist proposal for permitting foreign airlines to acquire stakes in domestic carriers. Air India,still retaining the first right of refusal,met total costs on only two of its 175 domestic and international routes in Q1 and Q2,while substantial foreign flying quotas remain unutilised. A more level-playing field for private domestic carriers to fly abroad must be immediately created. Meanwhile,disinvestment and downsizing will help Air India rather than the states perverse propping up of the ailing carrier. The induction of strategic investment will help cash-starved carriers such as Kingfisher raise capital. Thats the correct prescription,not the infectious hankering after state largesse of one kind or the other.