As Ajit Singh, civil aviation minister, resolved to end Air India pilots' strike and de-recognise the Indian Pilots Guild(IPG), the pilots had taken refuge under court order to work without notable gain. However, this had added another Rs 700 crore to the carrier's cumulative losses and financial mismanagement of Rs 1 lakh crore.

Singh's actions hint at the possibility of redrawing the roadmap for a beleaguered national carrier struggling hopelessly to revive itself.

As matters stand now, the aviation sector seems caught up in a Gordian knot. Air India and Kingfisher are heading for free fall while Indigo, Jet, GoAir, and Spicejet are precariously placed. The 2011 estimate for total accumulated losses and debts was a staggering Rs 1.2 lakh crore with growth plummeting to 12% from the 35% witnessed after NDA reforms in 2003.

The controller and auditor general audit has criticized the ministry. Air prices are rising and cartelisation is reemerging . Aviation turbine fuel (ATF) import remains in limbo. High ATF taxes and airport tariffs remain a hurdle. The FDI policy cannot cure all the problems.

The ministry had Bharat Bhushan, the directorate general of civil avation (DGCA) chief, tossed out unceremoniously. It is believed that he was set to issue orders to suspend Kingfisher Airlines amidst its escalating arrears, mismanagement and erratic cancellations. Interestingly, everyone is aware that bitterness and animosity at the top level was responsible for his dismissal as per a report in the ET by Rajiv Pratap Rudy, former Civil Aviation Minister.

(You need to login first to read complete news).
New User? Register for FREE!
» Back to Travel News