Indian minister under fire for AI losses

Wednesday, 15 Jul, 2009 0

NEW DELHI – India’s civil aviation minister Praful Patel has come under attack for the problems that threaten to ground the national carrier, Air India.

Members of parliament, calling for an official probe, have questioned the role of “middlemen and alleged corruption in all big deals involving Air India (AI)”.

The Times of India reported that the attack on the aviation minister focused on the award of bilateral rights to foreign airlines on routes where AI had traditionally made profits, the purchase of aircraft and the carrier’s withdrawal from profitable and busy domestic routes.

One member wanted to know why new planes were being bought from two different companies, and why AI was giving away bilateral rights to international airlines.

Giving the specific instance of Emirates, the member said that while the Gulf-based airline was operating 185 flights every week to various destinations in India, Air India could, in return, operate a meagre 20-25.

Other members questioned why AI was not operating in busy and profitable sectors. “Why have these slots been given away to private airlines,” they asked.

The minister said the government was planning an equity infusion in AI and a soft loan.



 

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Ian Jarrett



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