Why Tony Fernandes should go to bed with Tata

An aggressive AirAsia and ambitious Tatas are the right combination to fight lobbies in India

When Tony Fernandes, the Malaysian chairman of AirAsia said that Indian aviation policies smack of favouritism and are anti-competitive, he was right.

For decades, Indian aviation policy was suited for just two airlines: Air India and later for Jet Airways. The taxpayers paid a hefty bailout for an airline like Air India which could take the top prize for sub-standard customer service. The only reason taxpayers paid for this airline’s bailouts as successive civil aviation ministers and bureaucrats treated the airline as their free personal travel company.

During IPL matches, the news of former civil aviation minister Praful Patel’s daughter dictating where an Air India flight should land and pick up players is evidence that such practices were prevalent. 

Besides complimentary services all over the world from aircraft manufacturers, there have also been allegations of other pay-offs.  

Cut to the nineties, after the Indian government threw open the aviation sector, many Indians launched airlines thinking it would bring loads of money for them. But barring Jet Airways, all the other airlines shut shop. It’s surprising that a lot of these policies made by successive governments - BJP or Congress  -just suited Jet Airways – many times even at the cost of the loss-making national airline. Tata’s application during mid-nineties to launch an airline was not cleared by the then government is spite of the application meeting all the criteria. Later, a Tata official said its application was not cleared as they did not pay a bribe.

In the last few years, some more airlines have started flying again but the spectacular collapse of Kingfisher Airlines – taking Rs 7,000 crore from Indian public sector banks down the drain with it -- just shows that running an airline is not like selling beer. This industry needs a very high dose of political and cash backing.

Go Air, owned by the Wadias, SpiceJet of the Marans, and Indigo and now Air Asia-Tata are proactive to see that they get heard in New Delhi.  The high decibel news conference by Tony Fernandes was enough to send signals to the government that it’s time to rectify past mistakes. 

The Tatas need a partner like Tony Fernandes. He is aggressive and unlike other Indian businessmen does not believe in backroom meetings with government officials to get their plans cleared. Even the Tatas do not believe in public fracas and prefer backroom meetings to get their way.

In the conference, Fernandes raised very pertinent issues. Why does an airline need a five-year experience in the domestic skiesto fly abroad? This is a ridiculous policy – meant just to keep competition out.

Many Indians including well-educated pilots and engineers have lost their jobs due to the wrong policies of a notoriously corrupt government.

No wonder, it's time for Tony Fernandes to go to bed with Ratan Tata.