Saturday, April 21, 2012

Who grounded Tata bid to start an airline?

New Delhi: In 1997, then civil aviation minister C.M. Ibrahim acted under pressure from Jet Airways to thwart the Tata group's bid to start an airline in India in association with Singapore Airlines, a former top bureaucrat has said in a tell-all book.
"The history of civil aviation in this country would have taken a different trajectory, if Tata Singapore Airlines had been allowed to float an airline," wrote M.K. Kaw, the civilian aviation secretary in the government of prime minister I.K. Gujral.
In his book "An Outsider Everywhere - Revelations by an Insider" (Konark Publishers), Kaw said Ibrahim refused to clear the proposal despite policy papers being put up before him.
"The minister did not clear the file, despite several attempts on my part."
Later, Ratan Tata - whose group started India's first airline, Air India, which was later nationalised - met Kaw and inquired about the chances of the proposal coming through, the bureaucrat wrote.
"I said that it was difficult to guess. He (Tata) said that he had been approached, but it was not the policy for Tatas (to give bribes).
"The Tatas finally got tired of waiting and withdrew their proposal. Recently, Ratan Tata explained that one person had stood between the Tatas and the fulfillment of their aspirations in the civil aviation sector," Kaw said.
"But he (Tata) did not elaborate."
Kaw said when privatisation of airlines was permitted, Jet Airways had come up with 40 percent equity contribution by two airlines in the Gulf.
"The Tatas had mooted a proposal for a private airline with 40 percent equity contribution from Singapore Airlines. As this would have been a formidable competitor, Jet tried hard to upset the rules regarding foreign equity contribution.
20/04/12 Zee News
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