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Ministry reviewing decision on AI Calicut-Gulf route

Ashwini Phadnis

NEW DELHI, July 16

THE Ministry of Civil Aviation is reviewing the decision of whether Air India should be allowed to restart operations on the lucrative Calicut-Gulf route or whether the existing service being operated by Indian Airlines should continue.

Senior officials of the Ministry told Business Line that the 1993 joint venture concluded between the two airlines was done when the situation in both IA and AI was different.

``In 1993, IA was allowed to operate on the sector as they were in need of funds and had ready aircraft to operate on the sector. On the other hand, at that time, AI was flush with funds and did not have the aircraft required to operate from the Calicut air strip.

``But now, the clock has turned and it is AI which is in need of funds. In the circumstances, and given that disinvestment in both carriers is to take place, we will have to be careful while taking a decision,'' senior officials of the Ministry said. The y added that in view of the on-going disinvestment process, the Global Advisor is also taking a close look at the issue.

Currently, IA operates flights from Calicut to three destinations in the Gulf, including Abu Dhabi and Muscat under the joint venture for which IA aircraft and crew is used though the flight number is that of AI.

Despite senior AI officials informing presspersons that the airline will be allowed by the Government to operate on the route from November this year, Ministry officials emphasised that no decision has been taken as yet.

``They could have said November as Airport Authority officials had earlier indicated that the airstrip which will be able to accommodate AI aircraft will be ready by September-October, but there has been a slippage of a few months. Besides, AI may have s aid November for commencing operations as the aircraft which they plan to lease would have joined the fleet by then,'' Ministry officials said.

IA and AI entered into a joint venture in 1993 to operate the service, officials said. However, IA is unlikely to surrender this route without a fight as international operations are important to its health contributing almost one-third of the revenue ea rned by it. The two airlines have not being seeing eye-to-eye and have exchanged charges on several occasions on the right to operate on international sectors.