Welcoming some of the Modi Government’s initiatives in the aviation sector, Tony Tyler, Director-General, International Air Transport Association (IATA), feels that the government has to do much more to get more foreign players to invest in India. Edited excerpts from an exclusive interview:

The Indian Government has allowed foreign airlines to invest in India. But there have been few takers. Why is it that British Airways or Lufthansa has not invested in India?

You will have to check with the airlines the reasons for not investing. But, if you ask me, it is probably poor infrastructure, difficult to do business and high costs. Why would British Airways want to spend a lot of money investing in India where there are high taxes and all that when (they can) go and buy Aer Lingus in a country which favours aviation even when Aer Lingus is competing against one of the most competitive airlines in the world, Ryan Air, just across the road.

And yet that is where they are investing because they see better returns can be made from buying a 79-year-old Irish airline than investing in a new airline. A 79-year-old Irish airline in a mature market is still a better proposition than going into one of the world’s biggest countries with a fast growing market. There is something wrong.

In the new government, have you seen any thrust in the aviation sector?

Yes, but not in the infrastructure sector. The most significant one has been the emphasis on safety. I had in mind particularly the categorisation of the FAA from Cat II to Cat I. That has been very positive and good to see that India is now back where it should be.

Isn’t there much on the policy front?

I think there are one or two things that they are doing and they are not altogether positive. I think in the new system for (replacing) 5/20 rule, they have got this system of domestic flying credits. This is a good intention but misguided because it is so complicated. Monitoring and verifying are very complicated.

Airlines should fly routes because it makes economic sense. If you are going to put in place a system where you need to fly to get credits, then you are introducing a completely strenuous element into decision making, route development and operations.

It should not be there. It is just adding regulatory cost and burden to an industry that is already over-regulated. It is pulling in the wrong direction.

How do you look at the fact that ACI has ranked Delhi the world No.1 airport in the region?

What are the criteria? They did not ask the airlines.

Should the voice of the passengers who have voted for Delhi not count?

We are happy for them. There were not enough (passengers); there could have been a lot more. China is not a rich country; it is getting richer partly because it is adopting a pro-aviation structure and aviation is helping make China rich. They have a big successful hub in Beijing and they are building others. India should be doing more.

(The writer was in Miami at the invitation of the International Air Transport Association)

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