MPs' panel asks Air India shape up

New Delhi: National carrier Air India has hit another air pocket. The consultative committee of the members of Parliament on civil aviation, has made a scathing reference to various issues with regard to the airline's leasing model, losses, market share, routes, management and its performance.
Deliberating on its aircraft leasing model, the committee, which met this week, has asked the national carrier to take a fresh look into it. In fact, it has asked the management of the loss-making airlines to explain why it is leasing the same model of planes which it is selling alongside.
According to sources in the civil aviation ministry, a member of the committee said that despite the merger, the airline is not commanding the position of a market leader.
All of them also felt that even after the merger, the airline was still facing huge losses. The members also came down heavily on why the merged airlines had stopped operating on lucrative international routes which has now been taken up by many private airlines.
The committee was further critical on the performance and time schedules of both the carriers (Air India and Indian) and felt the issues needed to be relooked.
17/02/08 Raja Awasthi/Economic Times

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Categories: Air India - International Feb 2008, Air India Budget Feb 2008, Air India Domestic Feb 2008, Air India Regional Feb 2008, NACIL Feb 2008