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This is an archive article published on February 16, 1999

Airlines to take Rs 50 cr hit

MUMBAI, FEB 15: The go-slow agitation launched by the air traffic controllers (ATCs) will push the national carriers, Indian Airlines and...

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MUMBAI, FEB 15: The go-slow agitation launched by the air traffic controllers (ATCs) will push the national carriers, Indian Airlines and Air India further into red as their cost of operations has increased by over 30 per cent since the ATC agitation began. The Indian aviation industry, including the private airlines are expecting to take a hit of lost approximately Rs 50 crore due to the ATC strike, airline officials said.

While Indian Airlines, which was on the verge of making meagre profits in fiscal 1999, has to recalculate its projections of profits, Air India has lost all its hopes to turn the corner. Officials of both airlines say that their turnaround plans have been hampered by the ATC go-slow agitation. Earlier, due to fog in northern India, Indian Airlines losses went up substantially wiping off its entire profits recorded in November.

short article insert “The second-half of the current fiscal is being extremely bad for us,” says an Indian Airline official. The ATC strike has hit the tourist traffic of domesticairlines which peaks in the months of December and January. The airline has already recorded a loss of Rs 35 crore in the first six months of current fiscal.

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On the other hand, Air India’s losses due to ATC go-slow is being calculated in dollar terms as its entire cost is calculated in foreign currency. The entire crew of Air India takes home its allowances in dollar, hence any delay in the flight or even in the tarmac — when ATCs are not giving permission — for a takeoff are metered’ and has to be paid in dollars, rue Air India officials.

Besides, say AI officials, its four-engined fuel-guzzling aircraft are asked to circle over airports for more than one hour which results in more fuel consumption than IA’s Airbus 320 and hence more losses. “With this, our entire projections for the current fiscal has gone haywire and we are now making more losses,” Air India officials said.

The private airlines like Jet Airways and Sahara are clubbing their flights in order to pare its losses but losses continueto mount.

Airline officials say that the ATC strike has not been handled properly by the civil aviation ministry since the day one. Due to ministry’s dilly-dallying not only the airlines lost money, thousands of passengers were stranded all over the country and, worse, inside an aircraft. “The ATC services should have been bought under the Essential Services Act so that this kind of yearly dislocation of aviation services could be handled more effectively," says a Jet Airways official.

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The foreign airlines are also irked over the ATC strike in India which has resulted in the loss of image for the country.

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