Financial Daily from THE HINDU group of publications Monday, Sep 06, 2004 |
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Logistics
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Airlines Flight plans of the new Govt Ashwini Phadnis
While many will argue that the Government is just carrying forward the changes happening in this sector for the last several years, one cannot lose sight of certain important developments since the change of guard at Rajiv Gandhi Bhawan, the headquarters of the Ministry of Civil Aviation. Within days of taking over, not only did the UPA Government extend the deadline for calling the Expression of Interest (EoI) for modernisation and restructuring of Delhi and Mumbai airports, but also raised the foreign direct investment ceiling for the two airports. Also during this period the EoI for modernisation and restructuring of the two metro airports received thereby giving hope that one-day in the not too distant a future the country may actually get to see a world class airport. This period also saw Air India (AI) trying to grow. During this time the airline officially announced the launch of its low-cost airline, Air India Express. At the same time it also sought and received bids for leasing of more aircraft which would allow AI to extend its operations. The aircraft and the seat configuration of the aircraft that the airline wants to lease clearly show the airline's keenness to offer standardised products in every class on each aircraft; offer passengers the class of luxury available in the upper classes of other airlines, and, perhaps most importantly, expand its route map including operating non-stop flights from India to destinations in the US and Canada among others. The Government also suggested that Indian Airlines (IA) take a relook at its fleet acquisition plan in view of the changed situation and consider buying wide-body aircraft. The airline's fleet acquisition plan, which is with the Government, has been drawn up taking 1998-99 as the base year when IA had 10 wide-body Airbus A-300 aircraft. But most of these have now been withdrawn from active service. While the proposals for the two airlines are considered as a move forward, there has been little talk of carrying forward the acquisition proposal. Moreover, there is also a feeling that leasing of aircraft can at best be a short-term solution that is unlikely to help the airlines in the long run. However, given the manner in which the IA fleet acquisition plan has been languishing with the Government since 2002 many feel that leasing is probably the best way forward. It was also during this period that the low-cost airline, Air Deccan, after much struggle, managed to start operating an Airbus A-320 aircraft on the trunk route. Besides, the concession agreement which would allow construction to start for the private sector Bangalore airport project was also finally signed during this Government's first 100 days in office. No one is suggesting that all these developments have happened only due to the initiative of this Government, but as in a game, bouquets or brickbats go to the playing captain. While the Government has filed new flight plans, now comes the hard task of ensuring a smooth flight.
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