COMMENTARY
INTERVIEWS
SPECIALS
CHAT
ARCHIVES

Government denies Tatas' charge of bias against airline project

Aviation Minister Ananth Kumar has denied the Tatas' charge that the government had inordinately delayed their proposed domestic airline project, forcing them to pull out of it.

Kumar said if any company thought that there was inordinate delay under four different governments, then "the whole thing is wrongly perceived and even more wrongly expressed and projected".

Initially, the project was envisaged as a joint venture between the Tatas and Singapore government subsidiaries -- Industries Investment Corporation and Singapore International Airlines. Last year, the proposal was put again by the Tatas as Tata Airlines.

He said: "It saddens me that whenever a thorough examination of a project is being considered, it is construed as dilatory tactics, thus missing the comprehensive and holistic view about the entire industry and the economy," he added.

He also clarified that the Union government would not allow any foreign airline to "directly, indirectly or surreptiously" have equity participation in the domestic sector.

He said the government would, however, allow foreign institutional investors, without any link to a foreign airline, to have a 40 per cent equity participation in the sector.

He said the policy guidelines were announced on June 11 after studying in depth the prevailing policies in the United States, Europe and the far-east Asian region. Various sovereign countries monitor their domestic aviation with due concern and precaution as it was "sensitive and strategic".

Asked whether the critical global economic situation had made the Tatas pull out from the project, Kumar said: "I do not want to attribute any motive to any company or entrepreneur, more so a pioneer company like the Tatas".

He said: "We want a fairly competitive growth in the aviation sector. The competition should be fierce not only in trunk routes but also in sub-regional routes for both passenger and cargo traffic."

Kumar said though the Planning Commission had projected a five per cent growth in domestic aviation, unfortunateluy, due to the global recession, the last two years saw a dip of minus 3.7 per cent in the air traffic growth.

He said the policy to permit only domestic equity was also considered following concerns and apprehensions expressed by the members of Parliament over the project. The civil aviation ministry decided to appoint an expert committee to go into all issues of concern so that the sector would not not become sick and there would be healthy competition.

UNI

TATAS' AVIATION PLANS: EARLIER STORIES

• Tatas withdraw airline proposal, accuse government of dithering
• Eternity on the runway, as take-off signal remains elusive
• 'I rejected the Tata proposal because I felt they had a hidden agenda'
• Centre's nod to Tata airline will make India resurgent, argues MPs' group
• IA union threatens strikes and worse against Tata airline
• Airline industry will grow faster in Asia-Pacific region, says A-I chief
• Airport issue: Ball's in Tata's court, says minister
• Tata airline may take off
• Tata rethinks Bangalore airport project
• J H Patel urges Centre to clear Devanahalli airport project
• Tatas did not pull out of Bangalore international airport: Patel
• IA staff urge PM to shelve Tata Airlines project
• Tata Airlines venture not shelved, clarifies minister
• FIPB defers decision on Tata airline to August 8
• FIPB meets today: Tatas may take off as solo airline
• Nod to 40 per cent foreign equity in domestic airlines
• New civil aviation policy imminent, says Ananth Kumar