Great Wall Airlines: Beijing refusing to accept compromise

New Delhi: India’s attempt to resolve the row with China over security clearances to Chinese cargo carrier Great Wall Airlines by offering Delhi as a point of call instead of Mumbai and Chennai has fallen through with Beijing refusing to accept the compromise.
More significantly, China has held up clearances for Air India to fly to Guangzhou as agreed between both countries when Chinese President Hu Jintao visited India last November. Also, Jet Airways’ plans to fly to Chicago via Shanghai, too, are blocked as a response to India not letting Great Wall Airlines fly to Mumbai and Chennai.
Security agencies are not keen to allow the airline to fly to these two cities as key nuclear facilities are located near these two places — Kalpakkam near Chennai and the Bhabha Atomic Research Centre in Mumbai — and one of the main stakeholders in the company has “doubtful” credentials in the nuclear sector.
After much deliberation between the Ministries concerned and security agencies largely due to Chinese diplomatic pressure, it was agreed in August to offer Delhi as an alternate point of call and extend overflying rights to the airline. This, however, is not acceptable to China which says the application of the Great Wall Airline is in consonance with the air bilateral agreement between both countries.
At the heart of the matter is the history of the company that has a controlling stake in the Great Wall Airlines, a joint-venture with Singapore. Initially, 51% stake was with state entity China Great Wall Industry Corporation (CGWIC) while the remaining stakes were with Singapore Airlines Cargo (25%) and Dahlia Investments (24%), a subsidiary of Singapore-based Temasek Holdings.
Last year, CGWIC came under US scanner and was blacklisted for alleged transfer of missile technology to Iran. As a result of sanctions, the airline folded up operations for close to six months.
13/12/07 Pranab Dhal Samanta/Indian Express

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Categories: cargo Dec 2007, Foreign Dec 2007, New Dec 2007