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   ECONOMY
Wednesday, January 02, 2002 


Aviation sector to hit air pocket as links snapped with Pak

Our Corporate Bureau

New Delhi, Jan 1: India’s aviation sector would lose a total of about Rs 50 crore per annum due to the snapping of air links with Pakistan, though the neighbouring country would stand to lose about five times more.


IA mulls online booking
Indian Airlines is also planning to launch a similar on-line booking service for travel within India soon. The IA on-line booking facility will not include the transaction for purchase of the ticket.
“We do not have a system in place which can take care of the entire process — right from booking of the ticket till facility to make payments on-line”, company sources said.

While Air-India would alone suffer a loss of Rs 40 crore annually with Pakistan closing down its airspace, Indian Airlines would lose about Rs 3 crore (Rs 7 lakh a week) and Airports Authority of India (AAI) Rs 5 crore per annum, civil aviation minister Shahanawaz Hussain told reporters here on Tuesday after launching A-I’s e-marketing facility through the airline website. “Talks are on with Iran and China to allow their national carriers to fly to India”, Mr Hussain said.

He said that efforts were on to negotiate with other countries like Iran to allow the use of their airspace to Indian aircraft. An Iranian delegation is likely to arrive here in the next few days to hold talks on aviation matters. India is also contemplating to allow Iran Air to operate a flight to Delhi via Kabul, to provide the first air connection with Afghanistan after the new government took over, he said.

Talking about the losses due to closure of airspace, he said “this is a small amount to pay for maintaining our national honour and sovereignty, besides our commitment to fight global terrorism”, he said.

Pakistan, he said, would lose about five times more than India as its aircraft would now have to take long detours through the Sri Lankan or Chinese airspace. This would entail a loss of Rs 240 crore to Pakistan International Airlines.

A-I will lose around Rs 10 crore this year due to the snapping of air links between the two countries.

Meanwhile, A-I launched its on-line booking facility ‘Yatrik’, which can be accessed by logging on to www.airindia.com. Passengers who book tickets on-line have to pay through their credit cards, and can avail the benefit of special web fares — unrestricted fares and restricted fares (which are available in the market). Their credit cards will be processed through Icici’s payment gateway service.

A-I believes that its e-marketing initiative will meet with a good response, with two million business travellers spending $3 billion online in 1999, and the figure set to grow to $20 billion by 2004 as per a survey by Forrester Research. This facility will be available for those who purchase their tickets in India, but will stretch to other countries later.

 

 
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