Gujral'S Open Skies Stance Jolts Ia, Air India Officials

Indian Airlines (IA) and Air India (AI) officials have been taken aback by Prime Minister I K Gujral's statement on an open skies policy, following which they fear an erosion of the bargaining powers of the state-owned carriers during future air traffic negotiations.

Speaking at a luncheon hosted by businessmen in the Nepalese capital, Kathmandu, last Friday, Gujral had said he was totally dissatisfied with India's civil aviation policy and that unless our sky is open, we cannot go for globalisation of our economy.

Officials of the two carriers fear that foreign countries and airlines might prefer to wait and see which way the policy was heading rather than conclude bilateral air deals immediately.

 

If the Indian skies are indeed opened, then a bonanza awaits them at our disadvantage, a senior marketing official said, on the condition of anonymity.

Explaining, he said both IA and AI operated abroad on the principle of bilateral rights. If AI operated a lesser number of flights as compared to the foreign carrier, then it could demand concessions in return