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Shahnawaz
hints at return of Tatas, SIA for Air-India
Sanjay
Jog
Mumbai, Oct 15: Civil aviation minister Shahnawaz Hussain
on Monday dropped a broad hint at the possibility of the Tata
Group and Singapore Airlines (SIA) coming together again in
the much-debated Air-India (A-I) disinvestment process.
| Virgin Airlines
third flight plan bites the dust |
| THE civil aviation ministry is believed
to have rejected Virgin Airlines’ proposal to start a
third flight between Delhi and London in addition to the
existing two, in a serious bid to protect A-I’s slipping
business. Though the agreement allows Virgin to conduct
six flights, it also has a provision that it (Virgin)
should not carry out services on days when A-I is running
its services. The ministry has reportedly taken a serious
objection to Virgin’s plans to start a third flight on
Monday on the grounds that it would further affect A-I’s
declining load factor. The ministry is believed to have
asked Virgin to amend the agreement. |
In an exclusive interview with
The Financial Express on Monday, Mr Hussain
said: “There has been some progress on that front.” The minister
also made it clear that he was in favour of the two sides
coming together in the interest of the country. “The Tata
Group is the sole bidder. We have not retendered it after
the withdrawal of SIA. However, if both sides come together
again it will be quite good for the country as a whole, particularly
when the aviation and tourism industry has been badly hit
after the attacks on the US on September 11,” he added.
Mr Hussain, who belongs to the BJP, is an electronic engineer
and is the youngest-ever Cabinet minister. However, he declined
to divulge further details on the A-I front.
Mr Hussain’s statement assumes significance especially when
the aviation industry the world over has yet to come out of
the September shock. Similarly, there have been instances
of withdrawal of airlines from various sectors and retrenchment
of employees in view of the ongoing slowdown.
Mr Hussain said that his ministry would further tighten the
belt and strictly carry out an economy drive in a bid to improve
the functioning of A-I and Indian Airlines. The recent decision
to shut down and downsize would save Rs 21 crore annually.
The minister strongly justified his decision to shut down
20 and downsize 10 offline stations of the total 34 A-I offline
stations abroad and downsize 33 online stations in addition
to retrenchment of 52 employees from these online stations
and 90 employees comprising India-based and locally recruited
foreign nationals.
“More such cost cutting measures will be introduced soon.
High priority will be accorded to the improvement of performance
and discontinuation of extravagance,” he added.
Mr Hussain said that A-I’s inflight service would be improved
sharply in the near future. Simultaneously, attention would
be given to the on-time performance of Indian Airlines flights.
The minister admitted that the aviation and tourism sector
had been hit severely in view of the US attacks. “The aviation
and tourism sectors in India are in bad shape following the
US attacks. My ministry will shortly launch an exhaustive
campaign seeking the active cooperation of the passengers
to allay fears and encourage tourism across the country. The
modalities of the proposed confidence-building campaign are
being worked out,” he added.
Mr Hussain said that his ministry would not make any compromise
on security and added that stringent measures would be taken
to avoid any mishap. On the report on recent ‘highjackingss’
drama surrounding Alliance Air, the minister said that the
report was expected shortly. “However, I will not like to
comment further as investigations are on,” he added.
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