Russi Mody Renews Call For Ia, Air India Merger

Without the merger, there is no survival for Air India although Indian Airlines might survive for a few years, he says.

Talking to Business Standard. Mody appeared particularly concerned over the future of Air India, which he termed as his beloved, well-known airline.

Mody has sought expeditious decisions, both by the government and the airlines, on acquisition of aircraft and good managerial practices to improve the bottomline.

According to him, merger and induction of good managerial practices should be the two major planks on which the new civil aviation policy should be based.

These were the two key issues confronting civil aviation and should be given top priority.

 

Mody does not want to be dragged into any of the present controversies over PSU disinvestment in general and that of Air India, in particular, or the MCLR aircraft purchase issue or the caribjet aircraft lease deal and its termination.

He, however, makes no bones about the fact that he was against the present model of disinvestment of PSUs shares, including Air India's.

His recipe for their good health is offloading the 100 per cent equity held by the government in the following manner: 20 per cent to the employees, 40 per cent to financial institutions and 40 per cent to be retained by the government.

On the caribjet deal, he says leasing was the Hobson's choice because without going for leasing and acquisition of additional aircraft, A-I would have continued to lose foreign spots and money.

After a deal is struck, one can always criticise whether it is good or could have been cheaper.

This is a hindsight but in any case the lease has been terminated.

As for the responsibility, it was decided by the A-I board at a time he was chairman.

In any case, it was board's collective decision and not only the chairman and the managing director's, he said. Mody is unaware if the CBI has ordered a probe into the deal.

On the issue of MCLR aircraft purchase and the delay in decision-making, Mody agrees the decision should not have taken so much of time.

But he does not agree the delay was at the board's level. That stage when the board has to act will come only when the sub-committee evaluating the offers of the contenders, submits its report, he said.

The special committee headed by AVM H M Shahul is yet to submit the report and without that the board cannot proceed with the matter, let alone decide the case, he said.

Mody, however, hoped the uncertainty would end soon.