A Parliamentary Panel on Friday criticised the Civil Aviation Ministry for effecting a huge hike in bilateral air traffic rights with Abu Dhabi saying that prima facie this move “appears to facilitate one airline” (Jet Airways) to strike a deal with a foreign carrier (Etihad Airways) at huge premium.
Expressing surprise at the increase of weekly seats under the bilaterals from 13,330 to 36,670, the Parliamentary Standing Committee on Transport, Tourism and Culture said that this could be “a backhanded way of obtaining access to the huge civil aviation market in India” and national carrier Air India would be disadvantaged.
Asserting that no airline has the right to sell slots, it recommended that the Ministry must take away the three slots sold by Jet Airways to Etihad at london Heathrow airport and penalise the Indian carrier “for selling national property.”
It called upon the Ministry to reconsider the agreement for bilateral with the UAE, which may be kept frozen at the current level of 13,330 seats.
Any bilateral may be opened “only after the capacity of Indian carriers is increased. Moreover, this Committee has always maintained that Air India being the national carrier must have the first right of refusal for any bilateral,” Committee chairman Sitaram Yechury said.
He also flayed the Government for not infusing the entire equity amount of Rs 8,574 crore in the current fiscal in Air India as required by its Turnaround Plan (TAP), saying such shortfall would adversely affect its profitability.
Only Rs 5,000 crore was infused in the national carrier against the requirement of Rs 8,574 crore. The panel report said that any delay or shortfall in the infusion of equity would adversely affect the implementation of the turnaround plan and Financial Restructuring Plan.