Domestic airlines still do not want to have any serious competition from "outsiders" and are scared that Air Asia and Tata-SIA will be able to perform better and possibly take away their business

The Court case filed by Bharatiya Janata Party (BJP) leader Dr Subramanian Swamy will be actually heard today (1st May) against both Air Asia and Tata-Singapore International Airlines (SIA). Dr Swamy has contended that foreign direct investment (FDI) in fresh start-ups is not permitted and his stand was that civil aviation ministry only allowed foreign airlines to invest in existing domestic airlines, and not in new enterprises like Tata-SIA!

Led by Jet Air, IndiGo, Spice Jet and GoAir, through the Federation of Indian Airlines have been lobbying to prevent the launch of the above two airlines, claiming that the airline industry is estimated to have lost, so far, Rs53,311 crore from 2006-07 and the rupee depreciation has also added to their woes financially. How and why these carriers go about giving discounts is an altogether a different matter to write about.

Simply put, these airlines do not want to have any serious competition from "outsiders" and are scared that Air Asia and Tata-SIA will be able to perform better than themselves, and possibly take away their business. Their defence for giving discounts is to ensure full occupancy of their flights, particularly during lean periods. This is partially correct.

It would be interesting to see what would be their stand, if BJP comes to power at the centre? Will they stop and over-rule the approval process that has taken place so far, as far as Air Asia and Tata-SIA are concerned? This remains to be seen.

It may be recalled that, early in April, the civil aviation ministry issued a no objection certificate (NOC) for Tata-SIA. Earlier, the Home Ministry had given security clearance to Board members of this company. As usual, the Directorate General of Civil Aviation (DGCA) will have to give clearance for various operations manuals before issuing air operators permit (AOP).

The CEO, Phee Teik Yeoh has moved from Singapore International Airlines to Tata-SIA and all preparations are afoot for this airline to take to the sky, possibly in the third quarter of this year, when the festive season will commence in the country.

Air travellers in India can look forward to good service and at competitive rates when both airlines take to the sky and give value for money!

(AK Ramdas has worked with the Engineering Export Promotion Council of the ministry of commerce. He was also associated with various committees of the Council. His international career took him to places like Beirut, Kuwait and Dubai at a time when these were small trading outposts; and later to the US.)