This refers to the report "Pawan Hans may enter commercial airline business" (May 5). Air India received a bailout package of Rs 5,000 crore in 2012; and it's yet to get out of the red. Not many expect it to become viable at all. Even private airlines, such as Kingfisher, are drowning. Although reports indicate that the airline may get some money from banks, after its loans are restructured, and from some foreign sources, it is a long way. Meanwhile, low cost flying, which was presented as a propellant of the airline sector, is becoming unfeasible. Although it is a good model - one that must be worked upon and not abandoned - it is not until mid-2014 that the private airlines can be expected to return to profits.
In this light, how will Pawan Hans now getting involved in airline operations within specific regions, say, between Mumbai, Pune and Nagpur, help support traffic? Increasing air traffic in hinterlands is a good idea, but a private company would probably be better placed to tap the market than a state body. A public sector unit entering a new market - and that, too, as competitive as airline management - may eventually lead to the company going into the red and seeking a bailout package from the government. Today, the government is finding it difficult to stay afloat in sectors even where it is a monopoly. The prime minister must, therefore, intervene and stop the aviation ministry's quest.
Raghu Seshadri, Chennai
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