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`More bilateral air services pacts unlikely for now'

Ashwini Phadnis

NEW DELHI, July 2

WITH the Air India disinvestment process reaching a critical stage, the Government is unlikely to exchange any more bilateral air services agreements for now.

While senior Government officials refused to use the word ``frozen'' to describe the current thinking in the highest echelons of power regarding exchange of further bilateral air services, senior officials did say that ``right now, there are no dates mar ked on our calendars for exchanging bilateral air services agreements''.

However, officials were categorical in stating that there was nothing in writing to indicate the Government thinking and added that the decision has nothing to do with the ongoing disinvestment process.

``There is no injunction as such on not going in for more air services bilateral agreements. The decision does not mean that there is a change in Government perception on the issue. But there is a feeling that there is no need to go in for bilateral air services agreement right now. However, there is nothing to stop us from exchanging more bilateral if the right opportunity presents itself,'' officials said.

There were protests from several quarters late last year when despite the AI disinvestment process having begun, the Government had exchanged several bilateral air services.

Officials maintained that the Government had only exchanged bilateral air services agreements for markets or areas where the air seat situation was critical.

``The decision of exchanging bilateral air services agreement helped ease the arrival and departure of foreign and domestic tourist. It also helped ease the congestion at the major international airports. Besides, it has not really affected AI financiall y as the airline earns more than Rs 100 crore annually from various code-share and seat-share agreements,'' officials said.

The Government has been under increasing pressure from various State Governments, including Kerala, Punjab, Andhra Pradesh and Karnataka for opening new international airports to foreign airlines.