New Delhi: Air India (AI) was made to withdraw services from “lucrative and profit earning routes” in the name of “route rationalisation” while being forced to operate flights on loss making routes, said a Parliament Standing Committee report, which details how private airlines gained at the cost of the flagship carrier.
“Private players were favoured in the route dispersal guidelines,” the committee, chaired by Sitaram Yechury and consisting of 31 members of Parliament, noted last year.
“Indian Airlines was denied a level-playing field. Private operators were permitted to operate on routes of their choice. IA was forced to keep a network operational, which involved more than 70% routes that were loss making,” it said.
“In the Mumbai-Dubai sector, AI services were reduced from three to two flights daily but their competitor was able to operate four services daily. If the decision was based purely on commercial prudence, then how come the competitor could operate four services daily?” it questioned.
01/05/11 Tushar Srivastava/Hindustan Times
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