Par panel opposes hike in air traffic rights with Abu Dhabi

Castigating the Civil Aviation Ministry for effecting a huge hike in bilateral air traffic rights with Abu Dhabi, a parliamentary committee today asked it to freeze them at the old level saying prima facie this move "appears to facilitate one airline" to strike a deal with a foreign carrier.
Expressing surprise at the increase of weekly seats under the bilaterals from 13,330 to 36,670, the panel said "prima facie this move appears to facilitate one airline to strike a deal with a foreign airline for its stake sale at a huge premium," hinting at the recent deal between Jet Airways and Abu Dhabi-based Etihad Airways but not naming them.

It said this could be "a backhanded way of obtaining access to the huge civil aviation market in India" and national carrier Air India would be disadvantaged.
Maintaining that no airline has the right to sell slots, it recommended that the Ministry takes away the three slots sold by Jet Airways to Etihad at London Heathrow airport and penalise the Indian carrier "for selling national property."
The Standing Committee on Transport, Tourism and Culture, headed by senior CPI(M) leader Sitaram Yechury, "calls upon the Ministry to reconsider the agreement for bilateral with the UAE, which may be kept frozen at the current level of 13,330 seats," its report, tabled in Parliament today, said.

Any bilateral may be opened "only after the capacity of Indian carriers is increased. Moreover, this Committee has always maintained that Air India being the national carrier must have the first right of refusal for any bilateral."
Referring to aviation hubs around India like Dubai, Bangkok or Singapore, it said major investments made by the government and private airports to establish hubs in Delhi and Mumbai would be "hampered by the competition posed by these well-established hubs and their aggressive mega carriers.
"Allowing Abu Dhabi to come up as another hub, which is only about three hours flight away from major Indian metros, might have adverse impact on our efforts to establish world class hubs in India.