Sources in IA point out that while Jet Airways will run the ATR 66 aircraft on feeder routes which will enable it to break even the government is trying to dictate north-east routes to IA. Says a senior IA official: ``let them give us permission to charge a reasonable fare or allow us to use 50 seater aircraft across the country and we will buy them''.

Aviation Ministry officials say that one of the main reasons Jet was given permission to buy the 50 seaters was to prove a point to IA which has been resisting the purchase of 50 seater aircraft. Says a top ministry official smugly: ``now IA will see the kind of benefits Jet gets from this acquisition and see how pointless their resistance has been''.

IA hasrepeatedly told the aviation ministry that they want to buy new planes. IA, Chief Anil Baijal has stressed that his priority is fleet renewal but, the aviation ministry has been insistent that they will only fund the purchase of the 50 seaters. Baijal has also pointed out that flying 50 seaters in the north-east will give them a high negative rate of return. The proposal to purchase the 50 seater aircraft for IA is currently being scutinised by the Public Investment Board (PIB) where IA has put it objections on record. Aviation ministry representatives on the PIB however, have questioned the IA projections and said that a fresh assessment needs to be done. The proposal envisages a purchase of five fifty seater aircraft exclusively for the north-east with the Aviation Ministry insistent that IA go-ahead with the purchase to fulfill its social service goals.