Ministry, AI in fresh row over Melbourne flight

New Delhi: With the Ministry of Civil Aviation turning down Air India’s (AI) proposal to start operations to Melbourne — the second time that it has put its foot down in less than two months — the differences between the government and the state-owned carrier are out in the open. The public snub hasn’t gone
down well with the national airline, coming as it does close on the heels of having to scrap a $1.6 million image makeover deal with an Australian firm. Cato Purnell Partners had been signed up to revitalise Air India’s brand identity ahead of the Commonwealth Games, but the deal was cancelled after the ministry raised objections.
Aviations experts say the differences between the ministry and AI have been simmering for some time now.
Air India CMD Arvind Jadhav had flown to Australia in June to sign an agreement with Victoria State Premier John Brumby, and AI had proudly announced the launch of daily flights from Delhi from November 1.
Senior Ministry officials say they have every right to dictate terms as the airline is surviving on a lifeline provided by the government.
15/09/10 Tushar Srivastava/Hindustan Times

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Categories: Air India - International Sep 2010, Foreign Sep 2010, NACIL Sep 2010