Monday, October 11, 2010

Melbourne's Air India coup faces a tricky landing

Air India's plans to fly to Melbourne, heralded as a coup for Victoria when they were announced in June, are in doubt.
Melbourne Airport remains confident that Air India will still fly there, but says the service has been delayed to an unknown date because the airline is yet to gain approval from the Indian government for a new international route.
Air India, which is owned by the government, was scheduled to begin daily services between Tullamarine Airport and Delhi from November 1.
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The deal was hailed in June as a diplomatic and economic coup and evidence of Victoria's ability to beat NSW in a bidding war for airlines.
But Indian media have reported that India's Civil Aviation Ministry last month rejected the airline's plans to fly to Melbourne for the second time in two months.
It has also been reported that an Air India board member wrote to the regulatory authorities to stress that the route would not be viable and would only add to the losses of the cash-strapped airline.
11/10/10 Matt O'Sullivan/Sydney Morning Herald
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