Open Haj flights to private airlines to cut fares: Air India

Mumbai: As the government pays out nearly Rs 2,000 crore a year as subsidy for Haj flights, national carrier Air India has said that allowing private airlines to operate such flights could lead to a cut in fares and reduce the subsidy burden.
Under a bilateral agreement between India and Saudi Arabia, any Indian going for the Haj has to fly by Air India or Saudia Airlines, giving the two carriers a monopoly in carrying the pilgrims.
However, a reply by Air India to a query under the Right to Information Act said: "There is no benefit to the government of India (in giving) AI and Indian monopoly in operating Haj flights. Allowing private airlines to operate on Haj flights may result in reduction in fares and reduction in burden of subsidy to the government."
In the reply to Mumbai-based activist Attar Azeemi dated June 22, Air India's Public Information Officer and General Manager (Finance) A J D'Souza said the subsidy provided by the government for every Haj pilgrim had increased from Rs 7,403 in 1996 to Rs 29,176 in 2006. "Air India does not have the capacity to operate Haj flights. Therefore, aircraft are leased by AI for carriage of Haj pilgrims," D'Souza said.
08/07/07 PTI/Times of India

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Categories: Air India Jul 2007, Foreign Jul 2007