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Saturday, January 23, 1999

Turbo-prop issue to hit Indian Airlines again

Swati Chaturvedi  
NEW DELHI, JAN 22: Less than a month after Union civil aviation minister Ananth Kumar sacked the Indian Airlines board and replaced its chief executive, matters may come to a head with the new management as well. Former IA managing director P.C. Sen, most aviation experts believe, was sacked following the airlines' board refusal to purchase six 50-seater turbo-prop aircraft at a cost of around 250 crore. But while the new board of IA has taken no fresh decision on the matter, civil aviation secretary P.V. Jayakrishnan has announced that the Centre has decided to introduce short-haul turbo-prop aircraft with a seating capacity for 50 people for flights to different airports in the North-East.

Jayakrishnan is heading a seven-member high-level joint task force, comprising representatives from the civil aviation ministry, Union home ministry and North Eastern Council (NEC), set up by the Centre to review upgradation of airports in the region. The team visited Silchar, Imphal, Aizawl airfields yesterday.

Apartfrom saying that the Centre would have to decide on which aircraft would be bought -- from the French or from the Canadian -- Jayakrishnan has not made any commitment on where the funds are going to come from. That was, as is well known, the bone of contention with the previous board and managing director P.C. Sen.

After carrying out two techno-economic feasibility studies, the previous IA board had said that they could not buy the aircraft since it was not viable. They pointed out that, given the kind of traffic in the north-east, it would not make sense to buy the planes even if they virtually doubled the existing fare. They said, given the airlines finances, they would purchase the aircraft only if they were given an outright grant by the government.

Says a former board member: ``the midnight coup conveyed a message from the Ministry. That if you take decisions only in IA's commercial interest you annoy the Ministry. Now, there is no question of any opposition ''. The member points out that it is notjust a question of six 50 seaters but, decisions have to be taken about the replacement of the entire fleet of aging IA aircraft.

All North-East sector fares have a 30 percent subsidy and Sen who had pushed for a 10 percent fare hike in IA fares recently had pointed out that since the Aviation Ministry had opposed what the then board described as a ``minor hike'' the purchase would lead to ``economically unviable decisions''. A former board member points out: ``the Ministry threw a tantrum when we hiked the fares but, what prevented them from restoring status quo. It would have been a popular decision. And, now how will they explain a 160 percent fare hike''.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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