Jet-Etihad deal will dilute Air India's value: Swamy

Written By Unknown on Selasa, 08 Oktober 2013 | 23.25

The Supreme Court on Tuesday issued notices to aviation ministry, commerce ministry, FIPB, Jet Airways and Etihad seeking their replies within four weeks to a petition filed by Subramanian Swamy to stay the Jet -Etihad deal.

Also Read: Don't see SC order impacting Jet-Etihad deal: CAPA

In CNBC-TV18 exclusive, Subramnian Swamy, the petitioner against the Jet-Etihad deal clarifies as to why he is opposing the deal. According to him, the Tata-AirAsia deal is also illegal as the policy in India allows foreign airline to invest in an Indian airline but Tata does not own any existing airline. He believes the Jet-Etihad deal will reduce the importance of Air India as all the major routes will be covered by Etihad, rendering the national airline junk.

Below is the verbatim transcript of Subramnian Swamy's interview on CNBC-TV18

Q: Why are you opposing the Jet-Etihad deal?

A: I am not against any private party entering into any deal provided the policy allows it. Policy certainly allows foreign airlines to invest in Indian airlines unlike AirAsia which is totally illegal. Ratan Tata is not an existing airline.

I am concerned with the fact that the sky is being bartered away in this way to foreigners. That means India with 120 crore people will become just a transit stop for city states like Singapore and Abu Dhabi and Dubai. This is ridiculous for the country of this size. No other country would have this kind of a disgraceful and deplorable arrangement.

I am saying that you have bartered away airspace in a reckless disregard of public interest.

I know that bribes have been paid, I will come to that issue like in the case of 2G spectrum later but I think it is against national interest and therefore, it should be scrapped.

Q: During the course of your argument you did mention that this would have an impact on Air India as well, what would be the impact?

A: When all flights will have to go to Abu Dhabi and then from there go to other countries and Etihad can fly into India and go to Singapore, that is called code sharing and sixth freedom which means Air India has no work to do. It can't compete. Air India is national airline based on a number of large social objectives as well.

We need a national airline for a thousand other reasons, we fly to areas which others don't fly in. If you go on bleeding Air India the way you are doing now, the minister says we won't give anymore infusion of funds who is he to decide this? This is a matter which should be discussed in Parliament. Infact Parliament in the standing committee for civil aviation, in the CAG report and in the inter-ministerial meetings earlier opposed this deal. Why are these ministers so keen?



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