Steps to be taken to turn around AI; no privatisation: Govt

New Delhi, Aug 12 (PTI) Crying foul, Opposition on Friday
alleged in Lok Sabha (lower house of Indian Parliament) that
there was a deliberate design to make state carrier Air India
bankrupt in order to privatise it, prompting the government to
rule out privatisation and promise administrative and monetary
steps to turn it around.
CPI (Communist Party of India) and BJP (Bhartiya Janata
Party) members slammed the government saying it was doing
nothing to help the bleeding 'Maharaja', which used to
be a symbol of prestige, and is now on death bed.
Specifically targeting Air India's Chairman and Managing
Director for the mess and attacking the Prime Minister's
Office for his appointment, they demanded an overhaul of the
entire management followed by full financial infusion,
contending that the recent Rs 1,200 crore package was not at
all enough.
Responding to the members' concern expressed through a
calling attention motion, Minister of State for Parliamentary
Affairs V Narayanasamy ruled out any move to privatise Air
India and said the government would provide "all possible
support" to strengthen the carrier.
Listing various steps being contemplated to turn around
the airline, he said there will be a complete
"rationalisation" of manpower.
"If government found any officer responsible for the
losses, government will take action. Government has an open
mind, ... government will definitely consider that ... action
against officers responsible," said Narayanasamy, responding
on behalf of Civil Aviation Minister Vayalar Ravi who is
suffering from a throat infection.
Dissatisfied with the reply, the opposition members staged
a walkout.
Noting that a Group of Ministers (GoM) was looking into
the problems of Air India, Narayanasamy said a turnaround plan
with financial support would be unveiled soon.
"The policy of the government is to strengthen Air India.
Whatever possible support is required, will be given," the
minister said.
Contending that Air India had suffered due to declining
passenger load and competition from private airlines after
'Open Skies' Policy in 2003 during NDA rule, he said the state
carrier was facing a debt of over Rs 44,000 crore and a scheme
is being worked out to address it.
Measures under consideration include rationalisation of
routes to cut losses, rescheduling of aircraft, complete
rationalisation of manpower, redeployment of staff, reduction
in contractual appointments, aligning all operational and
technical agreements between management and staff to reflect
the present market conditions.
On issues pending from the merger, especially concerning
human resources, the Minister said a Committee headed by
Justice Dharmadhikari was soon going to submit its
recommendations to the government.
While the airline Board was being reconstituted and
remaining posts of functional directors being filled soon, he
said the Ministry has also tightened its oversight mechanism.
The Opposition members, including Gurudas Dasgupta (CPI),
Murli Manohar Joshi and Shahnawaz Hussain (both BJP), asked
the government to "come clean" on how large aircraft orders
were given, why the losses mounted heavily after the merger
two state-run airlines and "giving away" of profitable routes
to private and foreign airlines.
Responding to members' questions over the merger,
Narayanasamy said the decision had been approved by the
Parliament. He also rejected charges that AI's profitable
routes had been given up under any influence, saying routes
are decided on the basis of international and domestic norms.
The Minister also sought to counter the opposition charge
that Air India planes were made to under-perform in terms of
average hours on a daily basis.
The Opposition members wanted to know why salary payments
to the airline's 41,000 employees were being delayed on a
regular basis.
"The main issue is not just the (delays in) salary
payments, but the manner in which the national carrier is
being dismantled by those in power and those who are in
charge", Dasgupta said.
Asking how Air India declined "so fast in just four years"
and went on an "expensive shopping spree" for aircraft, he
alleged that "this exposes the nexus between politicians,
bureaucrats and unidentified powers who move in the corridors
of government".
"More the purchase, greater the booty. That is the popular
perception", Dasgupta said.
BJP leader M M Joshi asked how the airline could place
orders worth Rs 35,000 crore for 68 aircraft when its turnover
was merely Rs 7,000 crore. He also questioned the role of the
Finance Ministry in this, as also that of the PMO and the
Civil Aviation Ministry.
Quoting official records, the two leaders raised questions
on the process of selection of the present CMD, asking how he
had become eligible in 2009 after being rejected by the
selection committee the previous year. "The appointment is
dubious, the performance is dubious and the result is
dubious," Dasgupta said.
Former Civil Aviation Minister Shahnawaz Hussain said the
airline was in profits before the merger and even after the
9/11 crisis when the global airline industry went into losses.
Referring to the losses made post-merger, he said "like in
cricket matches, there is a big match fixing in the merger of
Indian Airlines and Air India. ....I also suspect such
match-fixing in the strikes in the airline."
"Take stern action against all those found guilty of
ruining Air India. Not just the CMD but everyone", he said.
Another BJP member Bhola Singh also raised similar
questions and equated Air India with the historic character
Anarkali.
"Akbar had told Anarkali that I will neither let you live,
nor let die. That is exactly the situation facing Air India,"
Singh said creating laughter.
Ramesh Bais (BJP) said while Air India stopped flights on
several routes, including Delhi-Raipur sector, on grounds of
lack of passenger demand, the private airlines which started
operating more flights on that sector were flying with full
load.
He also said there was a "conspiracy" to privatise the
national carrier and demanded that no such move should be
made.