House panel against hike in air traffic rights with Abu Dhabi

Pushing to protect India’s interests in regional aviation and of Indian carriers, a Parliamentary panel has recommended freezing of the proposal to increase air traffic rights with Middle- eastern regional hub of Abu Dhabi.The panel stating that the move to increase weekly seats under bilaterals from 13,330 to 36,670 ‘appearing’ to facilitate a recent deal between an Indian carrier selling stake to a foreign airline.Though the House panel did not name the parties involved, it was apparent that they were pointing out at the $300-million worth stake sale of Naresh Goyal-led Jet Airways to Abu-Dhabi-based Etihad Airlines.Sitaram Yechury, senior Communist Party of India leader and chairman of the Parliamentary Panel on Transport, Tourism and Culture also sought the Civil Aviation Ministry’s intervention into the matter and asking them to penalise Jet for selling three slots of theirs in London’s Heathrow airport.The panel reportedly said that the move would hamper prospects for Indian aspirations to be part of the regional aviation space and create a hub on the lines of Dubai and Bangkok.Yechury has asked the Aviation Ministry to  reconsider the agreement for bilateral with the UAE, which may be kept frozen at the current level of 13,330 seats.Terming the move to increase weekly seats as a ‘backhanded’ effort to tap into the markets here, the panel noted that this could affect  Air India carrier. The panel has always been of the opinion that Air India ‘must have the first right of refusal’ in any bilateral. The report called for opening of the bilateral only once the capacity of Indian carriers were increased.
http://newindianexpress.com/business/news/House-panel-against-hike-in-air-traffic-rights-with-Abu-Dhabi/2013/05/04/article1574066.ece