Air India sacks 30 more striking pilots

New Delhi: The Air India crisis has entered the 15th day on Tuesday and there is still no clarity on when the pilots' strike will end.

Civil Aviation Minister Ajit Singh met 13 Air India unions on Monday to discuss the turnaround plan and the future of the national carrier. While sources claimed that one of the requests by the unions was to reinstate the 71 sacked pilots, the Air India management went ahead and sacked 30 more pilots.

Meanwhile, to minimise passenger inconvenience Air India has extended their curtailed flight operations and contingency plan till May 25.

No More PLI for Air India Staff

NEW DELHI: Air India staff should get prepared to forego their Productivity Linked Incentive (PLI) very soon, Civil Aviation Minister Ajit Singh said at a meeting with the AI unions on Monday.

The meeting with the unions was perhaps called with this one agenda to impress upon the AI workforce that until the national carrier starts making profit, there will be no PLIs and that the unions should not resort to agitations in resistance. Singh also discussed the turnaround plan and the implementation of the Dharmadikari report with the 22 representatives who met him on Monday.

While promising promotions that had been frozen for sometime now, Singh sought the unity of the employees taking the example of Japan Airlines that had made losses of `120,000 crore in 2010 and yet made profit of `12,000 crore in 2011.

“The minister basically wanted to tell the unions that they were formed for a grievance redressal system and should not resort to methods of agitation to fulfil their demands. He also sought their cooperation in accepting that there will be no PLIs once the D report is implemented,” ministry official said.

The current union of pilots which is on strike was neither invited nor represented at this meeting. Even the erstwhile pilots of Indian Airlines who were represented under the Indian Commercial Pilots Association union apparently didn’t disagree with the PLI proposal. Air India spends almost `2,000 crore every year in PLIs.

The minister also stated that none of the employees will be sacked. “The merged entities had 34,000 people initially. Today just because of attrition the workforce is 27,000. We are counting on this attrition to save our wage bills, without sacking anyone,” the AI official said.

Arun Kumar, General Secretary of the Air Corporation Employees Union (ACEU) told media that their proposal was to merge the PLI with their basic pay and give a neutralised salary. “PLI is linked to profits. When the PLI agreement was signed in 1999, the erstwhile Indian Airlines was breaking-even by selling 19,000 seats per day. Today the two merged entities selling 40,000 seats/day is also not achieving this. So how can there be a PLI,” he said.

ACEU forms 80% of the workforce at the ground staff and cabin crew level. Their PLI is mostly 60-70% of the basic pay, hence the dependence on the PLI component is not huge. It’s the senior categories that draw almost 900% in PLIs that will take the beating in this move. “A DGM level officer, for example, draws a basic pay of `50,000 but gets PLI of `1.5-2lakh. It does not make sense,”Arun said.

Meanwhile, the situation on the Air India pilots’ strike remained stagnant.

http://expressbuzz.com/finance/no-more-pli-for-air-india-staff/394041.html

Chennai Port to have air freight station near airport

Chennai, May 21:

The Chennai Port Trust plans to build an air freight station (AFS) near the airport under public-private-partnership mode.

The Port Trust owns 2.13 acre of land about 2 km from the Anna International Airport.

“We intend to develop this land to commercially benefit the port. One of the avenues we intend to explore is the commissioning of an AFS,” said an official of the Port Trust. Incidentally, the country's first AFS, which is a concept based on the idea of providing airlines nodes near the production centres, was commissioned at Central Warehousing Corporation (CWC) four years ago.

Faced with congestion at the Chennai air cargo complex, the air cargo user community suggested the AFS to hold imported goods. Currently, there are two AFSs – CWC and Indev.

There is scope for more such facilities at Chennai.

The location is ideal for this facility as cargo volume through the Chennai airport is on the increase, the official said. An aircraft's cargo will be shifted to the AFS and consignees can take delivery of the cargo after statutory clearances and duty including customs documentation and examination; cargo acceptance check (weight / volume); security checks (x-ray screening / physical check) and palletisation.

The AFS will help avoid congestion at the gateway airports.

The advantages are: an integrated chain; customised logistics solution; lower logistics cost dwell time at the airport and lesser damages/claims.

The Port Trust has issued an expression of interest notice to the trade to explore market interest for developing an AFS.

It could also be a dry dock for storage of air cargo and its stuffing/destuffing from air containers to complement the facilities at the air cargo complex.

http://www.thehindubusinessline.com/industry-and-economy/logistics/article3442458.ece

Cathay Pacific may cut flights to Delhi

Hyderabad, May 21:

Hong Kong's flag carrier Cathay Pacific may be forced to prune its services to Delhi, even while it is planning to expand operations elsewhere in the country.

This comes in the wake of Delhi International Airport Ltd (DIAL), which operates the airport, effecting a nearly 345 per cent hike in aeronautical charges from May 15, 2012.

If Cathay Pacific snips its services to the Capital's airport, it will be the fourth foreign airline to either cancel or trim flights to Delhi in the recent months due to high costs.

While American Airlines and Air Asia took pulled out of Delhi, Air France opted to operate fewer flights to the Capital.

Other foreign airlines such as Lufthansa, British Airways, Emirates and Singapore Airlines have also opposed the rate hike.

evaluating impact

Mr Tom Wright, Cathay Pacific's GM- South Asia, Middle East & Africa, said: “We are evaluating the impact of the hike on our operations out of Delhi and will soon take a call (on whether to cut flights or not).”

The airline currently flies 14 times a week to Delhi. “It is a highly complicated formula.

With this kind of tariff, Delhi should be the most expensive airport in the world,” he told Business Line.

unrealistic proposition

He said passing on rate hike to passengers “is an unrealistic proposition in the current environment.”

Mr Wright refused to buy the argument that Delhi airport required the hike for its financial viability.

“With a world class airport such as Delhi, you cannot make losses. Then its financial model must be fundamentally flawed,” he says.

The airline's possible move to cut flights to Delhi may upset its plans to expand operations in India, including increasing it's Chennai service to daily from September and connecting Hyderabad and Kolkata, as the entire cycle will get affected.

The carrier has also been facing tough times in getting bilateral entitlements to add new destinations in India.

“Getting rights is time taking here. It took us 20 years to increase our services to India from eight flights a week to the present 35,” Mr Wright said.

http://www.thehindubusinessline.com/industry-and-economy/logistics/article3442754.ece?homepage=true&ref=wl_home

Mangalore air crash: Air India settles all compensation claims

Mangalore, May 21:

Air India Express has said it has settled all 160 cases of compensation related to the crash of one of its aircraft in the city in 2010.

The accident, of the Air India Express IX-812, which was landing in from Dubai, had killed 158 people on May 22, 2010.

The dead included 152 passengers and six crewmembers. Eight passengers survived the accident.

Mr S. Chandrakumar, Chief Operating Officer of Air India Express, told Business Line that there were totally 160 compensation cases. All these cases have been settled for a total sum of Rs 115.30 crore.

Of the 160 cases settled, 30 are of those who preferred to approach the Kerala High Court.

These 30 cases are settled as per the direction of the division bench of Kerala High Court, he said.

Mr H.D. Nanavati from Mulla & Mulla, Mumbai, was the legal counsel for Air India for settling the compensation related cases.

The Court of Inquiry, which had conducted an investigation into this accident, had noted in its report that the aircraft overshot the runway and its right wing impacted the instrument landing system localiser antenna mounting structure.

Thereafter, the aircraft hit the airport boundary fence and fell into a gorge. Due to impact and fire, the aircraft was destroyed.

Air Marshal (retd) B.N. Gokhale, former Vice-Chief of Air Staff, Indian Air Force, headed the Court of Inquiry into the crash.

The Court of Inquiry had suggested 13 recommendations to Air India Express.

Mr Chandrakumar said that all the recommendations of the Court of Inquiry have been implemented.

http://www.thehindubusinessline.com/industry-and-economy/logistics/article3443002.ece?homepage=true&ref=wl_home

Airport user fee collection legitimate, says Ajit Singh

Statutory motion defeated in Rajya Sabha

New Delhi, May 21:

A statutory motion on user charges imposed on air travellers and carriers by private airports in Delhi and Mumbai was defeated in the Rajya Sabha on Monday.

The Civil Aviation Minister, Mr Ajit Singh, assured the Upper House that the Government would take a look into apprehensions raised by members that the charges were arbitrary, and would come back to the House very soon.

The Opposition members had alleged “major corruption” in the way the private airports were allowed to collect airport and user development fees.

The statutory motion, moved by CPI (M) MP, Mr K.N Balagopal, demanded amendments in the controversial Airports Authority of India (Major Airports) Development Fees Rules, 2011. The Rules permitted the private airports to levy airport development fees from passengers.

Mr Singh said neither the Constitution nor any laws have been subverted to impose user charges in Mumbai and New Delhi. He said the Comptroller and Auditor General had been entrusted to audit the accounts of both the airports.

He said the amount was high as the charges for five years had been squeezed to be charged in two years “due to the delay in their implementation.” Mr Singh maintained that the charges would not be applicable after March 2014.

CPI (M) rescue

The Opposition members were not satisfied with his reply. The Bahujan Samaj Party walked out and Mr Balagopal pressed for division.

Other Opposition members also supported him. However, CPI (M) leader, Mr Sitaram Yechury, came to the rescue of the Minister and wanted an assurance that concerns raised would be addressed and the decisions made available to the House.

Later, Bharatiya Janata Party spokesperson, Mr Prakash Javadekar, said the CPI (M) helped the Government resolve the crisis.

“This shows their seriousness in raising the plight of passengers. We were ready to help them and they did not want voting,” he said.

http://www.thehindubusinessline.com/industry-and-economy/logistics/article3443287.ece?ref=wl_industry-and-economy

No job cuts under Air India revamp plan: Minister

Meets members of unions, cites Japan Airlines' restructuring

New Delhi, May 21:

Seeking the cooperation of Air India employees in implementing the turnaround plan, the Civil Aviation Minister, Mr Ajit Singh, assured them that no jobs will be cut as part of the plan.

He, however, gave the example of Japan Airlines which reported a profit of Rs 12,000 crore in 2011 after implementing restructuring plan against a loss of Rs 120,000 crore in the previous year.

The JAL restructuring saw the airline sack 5,000 as part of the programme.

At a meeting with the recognised unions of the airline, the Minister assured the employees that no one will lose their jobs. Mr Ajit Singh pointed out that through natural attrition the employee numbers had come down to 27,000 now from 34,000 five years ago when the merger process was implemented. This was the first meeting that the newly appointed Minister was having with Air India recognised unions.

The Government is providing Rs 30,000 crore over 10 years as part of the turnaround plan.

Although the Minister did mention that there will be some “pain” in implementing the turnaround plan, there was no talk of a wage cut. Mr Ajit Singh also indicated that before implementing the Dharamadhikari Committee report, the Government was ready to discuss about its' implications with the employees. The Committee was set up to bring about integration among the staff of Air India and Indian at all levels.

While there was no talk about the agitation by sections of pilots at the meeting, the Minister did say that Air India was in trouble and pointed to how things were starting to look good for the airline in the past two-three months.

After the meeting the office bearers of the largest employees union, the Air Corporation Employees Union claimed that they were in favour of stopping payment of productivity-linked incentives till the airline was in a better financial health.

http://www.thehindubusinessline.com/industry-and-economy/logistics/article3443074.ece

Air India sacks 30 more pilots

New Delhi, May 21:

Air India terminated the services of 30 more pilots on Monday. This takes to 101 the number of pilots whose services have been terminated by the state owned airline since the agitation began 18 days ago.

Meanwhile, breaking ranks two pilots, who had gone on sudden sick leave, reported back to duty in Mumbai on Monday. Normal airline operations have been affected since May 4 when a section of pilots started reporting sick.

The agitation is causing a daily revenue loss of Rs 12-15 crore to the Maharaja. The pilots are agitating against the management decision to train pilots of the erstwhile Indian on the Boeing 787 Dreamliner aircraft. Air India has ordered 27 Boeing 787 aircraft and the first is expected to join the fleet at the end of the month.

Interestingly, even as the agitation continues, pilots of erstwhile Indian and Air India continue to train overseas to fly the Dreamliner.

Domestic flight also hit

Sources indicated that though the agitation is being led by pilots operating flights to the UK, Europe, the US and Canada among others, the industrial unrest was also affecting the carriage of flights on domestic flights operated by the airline.

“Air India carries a lot of passengers who transfer from an international flight to a domestic flight and on their return flight also.

This number has seen a drastic drop of about 2,500-3,000 passengers a day,” a senior airline official said.

Government officials and senior airlines officials are worried that the agitation could impact the Government decision to provide Rs 30,000 crore to Air India over 10 years.

The Government has made it clear that the funds will be released only if the airline sees an increase in passenger carried and aircraft utilisation.

The current agitation has seen the airline truncate its normal international services, a move which is bound to lead a decline in passenger carried and aircraft utilisation.

http://www.thehindubusinessline.com/industry-and-economy/logistics/article3443257.ece?homepage=true

Ajit Singh to meet leaders of 13 Air India unions today

NEW DELHI: As the stir by over 200 Air India pilots entered the 13th day today, Civil Aviation Minister Ajit Singh said the unions have to look at the health of their organisation and understand that this is an era of competition.

Singh, who is meeting leaders of 13 recognised Air India unions tomorrow, said, "It is more for familiarisation to get to know them. Unions have a very important role to play not only about their demands but they should also look at the whole picture and health of their organisation".

The minister's appeal to striking pilots of the Indian Pilots Guild (IPG) to return to work has gone unheeded. The protestors want sack orders against 71 pilots to be withdrawn and issues relating to career progression addressed immediately.

The IPG, which has been derecognised by AI, has not been invited for tomorrow's meeting. It will be attended by representatives of the Indian Commercial Pilots association, cabin crew, ground handlers and other employees.

"Government has given money to Air India and fixed a lot of check points and performance standards. They will have to understand what life is about in an era of competition," Singh told PTI today on being asked whether any solution is being worked out to end the deadlock.

The national carrier operated a curtailed international schedule, flying seven West-bound flights instead of normal schedule of 16 daily flights, AI sources said.

Singh had yesterday appealed to the agitating pilots to return to work, saying their demands would be considered.

He had also said that the ongoing strike has been declared illegal by the Delhi High Court and keeping in mind the inconvenience caused to thousands of passengers, they should resume duty. He had also assured them that the government will not be vindictive.

The airline has so far lost about Rs 200 crore due to the agitation by over 200 pilots reporting 'sick'.

IAF medical facilities in various parts of the country, including Bangalore, Delhi and Jorhat, have been beefed up to conduct their full check-up by medical boards after they complete 14 consecutive days of remaining 'sick' on Monday.

http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/ajit-singh-to-meet-leaders-of-13-air-india-unions-today/articleshow/13317584.cms

AAI asks states to prepare plans for setting up new airports

NEW DELHI: Aiming to operationalise 225 airports across the country by 2020, the Airports Authority of India has asked all state governments to prepare plans and create inventory of airports, helipads or even unused airstrips which they want to develop and upgrade.

India has 456 airports and airstrips spread all over, with many of them built before or during World War II.

Developing these non-metro airports to enhance air connectivity in the hinterland is part of Airports Authority of India's (AAI) plan to reactivate, upgrade and modernise at least 225 airports by 2020, way up from 84 airports which are currently operational, AAI Chairman V P Agrawal said.

The state governments have been asked to prepare prospective plans to develop airports or helipads in their respective regions, prepare an inventory of airstrips, helipads and airports and forward them to AAI.

Depending on the traffic density forecast and possibilities of non-aeronautical revenue exploitation by using surplus land and connectivity with state capitals, the AAI would develop airports at these Tier-II and Tier-III cities, he said.

These works could be taken up either through PPP mode or in collaboration between AAI and state governments or through complete privatisation, he said.

On the two major metro airports it is developing, he said the plush new airport at Chennai is likely to be inaugurated next month, while the one at Kolkata would be completed for launch before October.

AAI has already developed 35 non-metro airports and completed upgrading of another 21, as it is carrying out work in six more at present.

In Jharkhand, the state government has already given free land for developing an airport at Deoghar, along with Rs 50 crore as earnest money. The Planning Commission has also given a matching Rs 50 crore for starting work, Agrawal said.

http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/aai-asks-states-to-prepare-plans-for-setting-up-new-airports/articleshow/13312800.cms

AI looks for new COO again

NEW DELHI: Yet again, financially beleaguered state-run carrier Air India is looking for a new Chief Operating Officer (COO). Advertisements for the posts have already been published in a section of the media and the airline’s website as well. Gustav Baldauf, who had earlier worked for Austrian Airlines and Jet Airways, was the first COO that the airline had appointed at a whopping salary of over `3 crore per annum. However, he was unceremoniously removed for telling the government to not interfere with the matters of the carrier.

Baldauf’s package and his foreign origin had raised several eyebrows with people questioning why the airline could not find an Indian professional for the post. Possibly, keeping in mind the furore that followed Baldauf’s appointment, the government has severely curtailed the pay packet, bringing it down to `40-60 lakh per annum. “The candidate will get another 40% (including perks) as performance-linked-pay based on key performance indicators (KPI) which will be determined by management/board,” an Air India official said. The post is currently being held by KM Unni on an additional charge along with the airline’s SBU- head (MRO- airframe). “The COO would be part of the top management team and would be responsible for operations of Air India including flight safety, ground operations and flight training and will also be overall in-charge of quality management system (QMS) & integrated operations control cell (IOCC),” said an Air India official.

The airline has also said that the commercial pilot recruited in this post will have to have qualifications on at least one of the fleet with Air India.

“A minimum 10.000 hours of flying experience out of which at least 5,000 hours as a commander on any type of aircraft in the current fleet of the Airline will be required,” the official said. Chandrakumar, who had been appointed as the acting COO of the AI Express, has already sought a VRS though his term comes to an end next year. The post was then offered to Sunil Kishen who is presently the ED of the southern region. However, his confirmation is yet to be heard of. Other candidates who had been appointed around the same time as Baldauf at hefty packages had also exited around February last year.

AI Express COO Pawan Arora’s and Sukumar, chief of training had both quit after being hired for a package of about `1.5 crore. The airline also hired Nikhil Jain recently as Director-Personnel on deputation from the Indian Railways.

http://expressbuzz.com/finance/ai-looks-for-new-coo-again/393703.html

Strike illegal, resume work: Ajit Singh to Air India pilots

Lucknow: As the strike by Air India pilots entered the 12th day, Government on Saturday promised to sort out problems of pilots within three months and appealed to them to join work.

Civil Aviation Minister Ajit Singh said that whatever problems pilots have they should come forward and discuss. "But it is not possible by creating loss or causing inconvenience to the passengers...The government will not adopt a victimisation policy, whatever problems they have will be sorted out in three months," he told reporters after inaugurating the new terminal at Chaudhary Charan Singh Airport in New Delhi.

On the issue of reinstating sacked pilots, he said, "The pilots should come back to work...there will be no victimisation by the government".

Efforts are being made to resolve the situation. It's my appeal to the pilots that they should think about the passengers," he said.

"If passengers get unhappy, it would create more problems in days to come...If the airline does not survive then there is no meaning of other things like salary, promotion or increment," he said.

As the Justice Dharmadhikari committee report is expected, there is no reason behind the strike and the pilots should come back to work, he said.

"Dharmadhikari committee was constituted to look into the problems of the pilots...their problems would be considered," he said.

The minister noted that the Delhi High Court had already declared the ongoing strike as illegal.

"The court had said the strike is illegal and they (pilots) must abide by the law," he said.

"The government has given a package of Rs 30,000 crore for the revival of AI but money alone would not make a difference. The airline has to be competitive and pay attention to the cost," he said.

The agitation has led the ailing national carrier to drastically curtail its international flight operations, particularly those to North America and Europe.

The airline has already lost over Rs 190 crore due to the stir.

On the financial problems being faced by the aviation sector, the minister said that cost of ATF with taxes in India was 40 to 50 per cent, whereas in foreign countries it was 30 to 35 per cent.

"If the cost is not reduced the problems will continue, but the manner is which passenger traffic and trade is increasing, future of the sector is bright," he said

http://ibnlive.in.com/news/ajit-singh-appeals-to-ai-pilots-to-resume-work/259489-3.html

Ajit Singh to meet unions today

The strike by Air India pilots entered the 13th day on Sunday. Civil Aviation Minister Ajit Singh will meet the leaders of 13 unions on Monday. The airline operated a curtailed schedule of international flights.

http://www.thehindu.com/todays-paper/article3440387.ece

Ajit Singh promises action on report

As the strike by Air India pilots entered the 12th day on Saturday, Civil Aviation Minister Ajit Singh promised action in two months on a report which dealt with some of their problems and renewed his appeal to them to return to work,

The fresh appeal came even as flights of the airline's subsidiary AI Express continued to be affected, though not severely. The airline's curtailed international flight schedules, however, operated normally, official sources said.

“The Dharmadhikari report [on AI merger] has come and it will be implemented in two months after having talks with them. Therefore, at this time, I will again appeal to them to come back to work,” Mr. Singh said, while talking to journalists after inaugurating a new terminal here.

“We are making efforts to resolve the situation... I will appeal to the pilots that they should think about the passengers,” he said. The stir has already cost the ailing national carrier Rs. 200 crore.

The report is stated to have made suggestions like allowing pilots of AI and IA to be cross-utilised for all aircraft in the merged airline's fleet, while having different seniority criteria for them.

It also reportedly suggested bringing about pay parity between employees of the now merged AI and Indian Airlines.

The Minister said the pilots' strike was declared illegal by the High Court. “When the Dharmadhikari report is discussed, talks will be held on all their problems. As such there is no reason for them to be on strike,” he said. — PTI

http://www.thehindu.com/todays-paper/tp-national/article3437963.ece

As AI struggled for cash, its employees milked it dry

Vigilance wing unearths over 160 cases where employees stole liquor, caviar from aircraft

Even as Air India struggles to survive on the back of a Rs.30,000-crore government bailout, investigations by its vigilance wing have unearthed over 160 cases where employees milked the airline by stealing liquor, caviar and other luxury goods from aircraft.

The cases, Union Civil Aviation Minister Ajit Singh has said in response to a question in the Lok Sabha, included a flight purser who was dismissed from service after he was apprehended with 372 mini-liquor bottles by customs at Delhi's Indira Gandhi International Airport.

Similarly, a catering officer was found with Rs. 20,200 worth of caviar tins that were missing from a special charter flight.

Large-scale malpractice, the Minister said, ran through the airline. Air India officials selected five-star hotels in New York, Chicago and Mumbai for cockpit crew without following the tender procedure, while bills were raised at a Delhi airport restaurant for delayed departure even though the flight was on time.

Bogus attendance, inflated bills and overtime claims were also unearthed during investigations. For instance, two senior officers were found guilty of procuring portable entertainment appliances and ground pods through a middleman, thus causing loss to the tune of $1.6 million besides a recurring cost of over Rs. 7 crore per annum for equipment which were hardly used.

Mr. Singh said even highly-paid pilots had engaged in malpractices, with several found to have been claiming allowances to which they were not entitled. In one case, a pilot was actually found to be working for another airline while continuing to draw a salary from Air India. Air India officials, the Minister said, made payments of allowances linked to time spent flying aircraft from the date their contracts began — whereas they were only certified to fly aircraft a month later.

Junior staff at Air India were not far behind in following their seniors. Air India officials, the Minister said, frequently misused their position to get their relatives and friends upgraded.

http://www.thehindu.com/news/national/article3436439.ece

Govt to fast-track proposal for FDI in domestic airlines

Security concerns to be addressed by strict screening

New Delhi, May 20:

The Government plans to fast-track the proposal to allow foreign airlines to invest in domestic airlines once the ongoing Parliament session ends on May 22.

It was in January this year that the Civil Aviation Ministry had announced a “broad consensus” in the Government on allowing foreign airlines to acquire an up to 49 per cent stake in domestic airlines. But the proposal is yet to be approved by the Government.

At the moment, the proposal is undergoing inter-Ministerial consultations before it is brought to the Union Cabinet for final approval. Official sources confirmed to Business Line that the proposal will be accelerated soon after the Parliament session is over.

The Indian Government used to allow foreign airlines to invest in domestic airlines when the sector was first opened in the early 1990s. At least three West Asian carriers, including Kuwait Airways and Gulf Air had invested in Jet Airways. However, when the policy was changed and foreign airlines were banned from having a direct or indirect stake in domestic airlines, the foreign airlines' stake was bought by Jet Airways.

Growing interest

Officials claimed that, contrary to the public posturing, a number of domestic airlines have informally approached the Ministry of Civil Aviation, seeking that the proposal be pushed through at the earliest. Besides, a number of global private equity funds that traditionally have a stake in several leading international airlines have also been making discreet inquiries from the Ministry on the issue.

Official sources said that foreign investment in Indian carriers is being given a thrust right now because most domestic airlines are bleeding and banks in India are reluctant to fund most of them.

So, there are only a few options left to keep them afloat.

Even as the Government starts the process of implementing a change in policy, there has been a steady stream of chief executive officers and owners of global airlines visiting the Ministry of Civil Aviation.

In March this year, the Chairman and Chief Executive, Emirates Airlines and Group, Sheikh Ahmed bin Saeed Al-Maktoum, visited the Ministry of Civil Aviation. Emirates is one of the most profitable airlines in the world.

Earlier this month, it announced the 24th consecutive year of profit-making, posting a profit of $629 million.

The CEO of a European airline, along with the promoter of a private airline in India, also called on Civil Aviation Ministry mandarins earlier this month.

Officials pointed out that, as and when the change in policy is brought about, there will be adequate checks and balances to ensure that investments from countries or sources that are detrimental to India's security are blocked.

Strict screening

Each proposal by a foreign airline will have to be cleared by the inter-Ministerial Foreign Investment Promotion Board (FIPB). With the Home Ministry being a part of FIPB, any proposal considered against India's security interests will be blocked, officials said.

http://www.thehindubusinessline.com/todays-paper/tp-corporate/article3440089.ece