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India dismisses any wrongdoing in AI's Boeing deal
Tuesday, May 17 2005 11:36 Hrs (IST) - World Time -

London: India has dismissed any wrongdoing in Air India's decision to opt for an all-Boeing fleet instead of the European consortium Airbus Industrie, saying the national flagship strictly followed the laid down procedures and there was no need to "assuage feelings" of the any aggrieved company.

Addressing a press conference in London, Civil Aviation Minister Praful Patel also said that India was keen that more Indian carriers, including Air India and private airlines, fly to Pakistani destinations like Karachi and Lahore, but "there are some limitations".

Answering a specific question on the raging controversy over Air India's decision to buy an all-Boeing fleet at an estimated Rs 30,000 crore, Patel said the "controversy is only in the media. We follow established and well-laid down procedures. Air India takes decisions on what is good for them. They have techno-economic evaluation. They cannot go outside the guidelines".

"There is no need to answer or assuage the feelings of any company," he added.

To a question on increasing flights to Pakistan, Patel said despite improvement in relations, there were restrictions still on increasing air connectivity.

Pointing out that India had worked out a policy on increasing air connectivity to South Asian Association for Regional Cooperation (SAARC) nations in 2003, Patel said, "Permission was not granted by Pakistan to do so, including by the private carriers."

Air India, he said, was planning to launch services to Lahore and Karachi, besides Indian Airlines, which was already operating. He said if buses could ply, why not planes fly.

Speaking on modernisation of airports, the Minister said the design for the international airport Kolkata, the eastern metropolis, had been awarded to a French firm, which had designed the Charles de Gaulles Airport of Paris after an international design competition. "The work will begin by early 2006," he said.

On the restructuring and modernisation of Delhi and Mumbai airports, he said the new joint venture partners for the Airports Authority of India (AAI) for the two metro airports would be selected by June end as the international bids, for which nine consortia are in fray, close on June 24.

Patel said the airport at Ahmedabad would be ready by 2007 as it was one of the "priority" non-metro airports to be modernized. "CPG of Singapore, which has developed the Changi Airport and Kothari Associates have been awarded the contract. It has two flights a week now, but the number would increase soon". He said work would commence in June for Bangalore international airport.

On Indo-UK bilateral ties, Patel said the number of flights between the two countries had been increased from 19 early last year (2004) to 49 per week next summer season and would go up to 56 by October next year (2006). "It is the most liberal agreement we have signed with the UK after an open sky agreement with the US".

PTI









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