AI unions write to PM, blame govt for mess

New Delhi: The financial mess in national carrier Air India is fast turning out to be a classic whodunit. Unions of the cash-strapped AI have written to the Prime Minister, alleging how decisions of the aviation ministry in past few years have brought the airline to the brink of closure. These include merger of AI and Indian Airlines; increasing order size of new planes to 111 — worth Rs 44,000 crore — and allowing unrestriced access to foreign airlines to India.
The Air Corporations Employees' Union, that represents 12,000 employees, has claimed in its letter to the PM sent last week that AI had originally planned to purchase just 24 aircraft and IA was eyeing 43 new planes. "AI changed its fleet plan and within 24 weeks firmed up a plan for 68 aircraft. The ministry and airline board, while clearing this proposal, ignored the fact that AI had a turnover of Rs 7,000 crore per annum," ACEU general secretary J B Kadian has said in the letter.
However, aviation minister Praful Patel said "no government had ever done so much for AI" and that the employees must perform now. "The national carrier had a very old fleet, wanted new planes and told us once that happens, they would be able to compete with anyone. The airline decided on the quantum of aircraft. So what is the fuss over new aircraft?" he said.
The unions have also questioned the decision to merge AI and IA to form the National Aviation Company of India Ltd (NACIL) which saw four CMDs in past two years. Both the airlines still operate with separate codes (AI and IC) and no integration has taken place so far that promised a cost savings of Rs 600-1,200 crore per annum. "The merger was a failure as the company (suffered) a loss of Rs 3,000 crore in the first year itself," says the letter.
AI and IA unions said the unrestricted entry to foreign airlines in both number of flights as well as cities — to and from India — has severely hurt the national carrier.
30/06/09 Saurabh Sinha/Times of India

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Categories: NACIL Jun 2009