Praful Patel, aide sunk Air India, former Indian Airlines chief says

August 17, 2012

indian_air

New Delhi, August 17: In an unprecedented whistleblowing act, former Indian Airlines chief Sunil Arora wrote to the then cabinet secretary B K Chaturvedi in May 2005 complaining that he and the IA board were being pressured by then civil aviation minister Praful Patel and his OSD to take financially damaging and commercially unviable decisions.

In his May 28, 2005, letter, Arora listed the decisions on which the board was overruled: purchasing more jets than required, disallowing IA to fly on viable routes to make way for other operators and, even "changing the seating configuration" to favour a particular aircraft manufacturer.

Two Lok Sabha MPs, Prabodh Panda (CPI) andNishikant Dubey (BJP) have now approached the CVC for a probe into Arora's allegations, saying the government has failed to act.

"I would like to place before you a series of events and certain directions given to me by my immediate superior officer and the minister of civil aviation which have a vital bearing on certain critical decisions being taken in Indian Airlines and Air India... I have been constrained to write in detail to be able to explain the nuances of the verbal directions, the infirmities in the subsequent decisions taken and my consequent sense of unease in the matter," Arora wrote.

He also expressed apprehension over the consequence of his action. "Sir, kindly pardon my impertinence but I implore you to share the contents of this communication only with the Prime Minister... I would not have taken the liberty of making such a suggestion but for the fact that like every mortal, I fear for my personal and family safety."

Complaining of pressure, Arora said, "During the last one year, almost all board meetings of Air India, and even some board meetings of Airports Authority of India have become a farce. Instructions on key agenda items are communicated before hand on telephone or personally by minister, civil aviation, or by his OSD K N Choubey. No suggestions to the effect, that the issue in question requires a more detailed examination or that there are some implications are countenanced. The key word is 'immediate and unquestioned compliance'." Some of the most glaring instances are cited:

"AI discussed their dry leasing plans in 99th board meeting held in Mumbai on 17.7.04. Prior to this meeting, minister spoke to me... said since he and secretary, civil aviation, were satisfied about the correctness of the plans, it is expected that we should immediately endorse it during the board meeting. When I tried to tell him on telephone that the agenda item raises some issues, I was curtly asked to endorse the proposal and a counter question was posed on the telephone that when the minister and the secretary himself are satisfied, what more is there for us to see?"

Arora further wrote that the minister forced him to seek flight slots for IA to the UK and the US during the winter schedule instead of the profitable summer schedule even as private airlines were allowed to fly to these destinations in the summer.

"There is a clear mismatch between the reply given before the members of Parliament and the real facts. On 18.01.05, I got a message to immediately speak to the minister on telephone at his Mumbai landline... There was a conversation which went on for 15 to 20 minutes and minister civil aviation clearly told us not to file for flights to London, for the summer schedule 2005. He started by saying that since Indian Airlines does not have wide-bodied aircraft, it would not be advisable for Indian Airlines to apply for the slots at this stage.

I politely remonstrated that none of the other airlines, which have been permitted to go abroad viz Jet and Sahara, had wide-bodied aircraft till that time and if they can be considered for flights to London, Indian Airlines being the national carrier, should at least be given equal footing, if not precedence. The response on the other side was that, Indian Airlines should apply for flights to London or for other UK and US destinations only from the winter schedule."


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News Network
May 5,2020

New Delhi, May 5: India registered the biggest jump in numbers of COVID-19 cases and deaths, with 3,900 new cases and 195 deaths being reported in the last 24 hours, according to the Ministry of Health and Family Welfare on Tuesday.

"3,900 COVID-19 cases and 195 deaths have been reported in the last 24 hours, the largest spike till now in both," according to the Ministry of Health and Family Welfare.

The total number of confirmed coronavirus cases in India reached 46,433, including 1,568 deaths, according to the Union Ministry of Health and Family Welfare on Tuesday.

According to the latest update by the MoHFW, 12,727 patients in the country have been cured and discharged, or have migrated, as of today morning. At present, there are 32,138 active cases in the country.

Maharashtra with 14,541 cases is the worst-affected state by the disease, while Gujarat with 5,804 cases is second on the list.

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News Network
March 4,2020

New Delhi, Mar 4: The government on Wednesday permitted NRIs to own up to 100 per cent stake in disinvestment-bound Air India.

The decision comes at a time when the government is looking to sell 100 per cent stake sale in the national carrier.

Union minister Prakash Javadekar said the Cabinet has approved allowing Non-Residents Indians (NRIs) to hold up to 100 per cent stake in Air India.

Allowing 100 per cent investment by Non-Resident Indians (NRIs) in the carrier would also not be in violation of SOEC norms. NRI investments would be treated as domestic investments.

Under the Substantial Ownership and Effective Control (SOEC) framework, which is followed in the airline industry globally, a carrier that flies overseas from a particular country should be substantially owned by that country's government or its nationals.

Currently, NRIs can acquire only 49 per cent in Air India. Foreign Direct Investment (FDI) in the airline is also 49 per cent through the government approval route.

As per the existing norms, 100 per cent FDI is permitted in scheduled domestic carriers, subject to certain conditions, including that it would not be applicable for overseas airlines.

In the case of scheduled airlines, 49 per cent FDI is permitted through automatic approval route and any such investment beyond that level requires government nod.

On January 27, the government came out witha Preliminary Information Memorandum (PIM) for Air India disinvestment. It has proposed selling 100 per cent stake in Air India along with budget airline Air India Express and the national carrier's 50 per cent stake in AISATS, an equal joint venture with Singapore Airlines.

Under the latest disinvestment plan, the successful bidder would have to take over only debt worth Rs 23,286.5 crore while the liabilities would be decided depending on current assets at the time of closing of the transaction.

This is the second attempt by the government in as many years to divest Air India, which has been in the red for long.

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News Network
March 5,2020

New Delhi, Mar 5: The primary classes of all schools in the national capital will remain closed till March 31 to prevent a possibility of spread of coronavirus, Deputy Chief Minister Manish Sisodia announced on Thursday.

According to Directorate of Education (DoE) officials, while elaborate guidelines have been issued about preventive measures for coronavirus, students of nursery and primary classes are too young to understand the risk, making them more prone to infectious diseases.

Sisodia, who also holds the education portfolio, tweeted, "As a precautionary measure to prevent the possibility of spread of COVID-19 amongst our children, Delhi Government has directed the immediate closure of all primary schools (Govt/ aided/ private/MCD/NDMC) till 31/3/20(sic)."

A senior DoE official said, "Elaborate guidelines have already been issued. However, students of nursery and primary classes are too young to understand the risks associated with COVID-19. Thus they are more prone to infectious diseases and mingle around with classmates more often."

"It will be good if they are trained in the do's and dont's under the care and supervision of their parents at home. However, students of classes other than primary will continue to come to schools or examination centres for writing their examination as per schedule. The teaching, as well as non-teaching staff, will also attend regular school," the official said.

As of now, the number of confirmed COVID-19 cases in the country stands at 30, including 16 Italian tourists. The figure includes the first three cases reported from Kerala last month who have already been discharged following recovery.

Alerted by the coronavirus case reported in Delhi-NCR, schools in the region have sent out advisories to parents suggesting that they do not send their wards to attend classes even in case of mild cough or cold, and saying that they may declare holidays if the need arises. A few schools have announced already holidays and others have advanced their spring break.

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