Haj subsidy has Air India fuming

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New Delhi, Sep 12: The Cabinet’s decision to increase the number of pilgrims availing the Haj subsidy and flying by the national carrier this year has had Air India fuming. For a carrier already reeling under Rs 2,000-crore loss and burdened with severe employee-related issues, a welfare measure like this puts undue duress on it.

Interestingly, Air India does not even get to set the amount of fare payable to the carrier transporting the pilgrims. This is set by the Saudi Arabia Airlines that also carries out the Haj duty.

“The sheer volumes of people and logistics and resources that go in the Haj duties is huge,” an official attached with the national carrier said.

“Aircraft engaged in Haj duty have to first pick up pilgrims from the smaller towns which have been approved as part of the hub and spoke arrangement, and then after they drop the pilgrims to the final destination, they come back empty,” he added. Similarly, in order to pick up the pilgrims, the aircraft have to go to Jeddah empty, which results in an increase in expenditure. Any commercial airliner does not view huge aircraft flying empty favourably as it implies a loss in revenue.

Last year, Air India had pitched for allowing private airlines to operate Haj flights, saying this could lead to a cut in fares and reduce the subsidy burden.

Under a bilateral agreement between India and Saudi Arabia, any Indian going for the Haj has to fly by Air India or Saudi Arabian Airlines, giving the two carriers a monopoly in carrying the pilgrims.

In a reply to a query under the Right to Information Act, Air India had said: "There is no benefit to the government of India (in giving) AI and Indian monopoly in operating Haj flights. Allowing private airlines to operate on Haj flights may result in reduction in fares and reduction in burden of subsidy to the government."

The reply, by Air India's then public information officer and general manager (finance) A J D'Souza to Mumbai-based activist Attar Azeemi’s query dated June 22, 2007, stated "Air India does not have the capacity to operate Haj flights. Therefore, aircraft are leased by AI for carriage of Haj pilgrims," D'Souza said.