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Created on 20 June 2018
(Image Courtesy: AirAsia)
Was 5/20 aviation rule akin to sacred Lakshman Rekha? Or was it contrived to help a few private airline operators enter overseas flights domain earlier reserved for national carriers?
Did bribes exchange hands during UPA & NDA regimes for doing away with five-year domestic experience criteria to seek permit for flying abroad? The relaxed rule now only stipulates operation of 20 aircraft at time of application under the 2016 National Aviation Policy.
Many such questions would stir mind of anyone tracking low-cost airline AirAsia’s turbulent entry into India through joint venture (JV) route in 2013.
The turbulence was caused by turmoil within JV, anti-JV machinations by certain airlines, political lobbying & litigation. The turbulence touched a new high on 28th May 2018.
On this day, Central Bureau of Investigation (CBI) filed a first information report (FIR) against “criminal conspiracy and criminal misconduct” during 2013 to 2016 to benefit Malaysia’s AirAsia (AA), its JV Air Asia (India) Pvt. Ltd. (AAI) and certain associates.
FIR has named several suspects including unspecified public servants. CBI also raided premises of certain suspects and seized some documents.
Stakes are high in aviation business as evident from the Government pursuing a parallel hunt for the facts about alleged bribes-tainted lobbying for reforms & breach of regulations. The facts discovery is already being pursued in the courts through two separate petitions filed in 2013 and 2016.
The bombshell in FIR reads as: “Information has further revealed that Mr. Sunil Kapur in the month of December, 2014 at the coffee shop in the Four Season, Mumbai Hotel along with Mr.Bo Lingam handed over a closed packet containing cash of Rs. 50 lakhs to one Mr. Sriram, which was given by Bo Lingam to facilitate the removal of the then 5/20 rule”.
CBI has alleged that Mr. Kapur, a food service provider, is a lobbyist for AA. He got onboard catering contract on quid pro basis from Tharumalingam Kanalingam @ BO Lingam, AA’s Deputy Group CEO.
Though issues relating AAI are complex and too many, one that deserves scrutiny is 5/20 rule. This is because many such rules have sustained India’s legendary crony capitalism, smothering economic competitiveness. Moreover, arbitrary and discretionary rules promote corruption. They make a mockery of Government’s ease of doing business claims.
Read more: Pay Bribes to end Crony Capitalistic Rules in Incredible India!
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Created on 11 November 2015
(Image Courtesy: IATA)
It was amusing to hear other day Civil Aviation Minister Ashok Gajapathi Raju describing consultations on draft civil aviation policy (CAP) as “never done before”.
Mr. Raju should know that consultations on draft CAP with all stakeholders have been held at least twice earlier – in Q1 2000 when National Democratic Alliance (NDA) was in its 2nd tenure and in Q1 2012 when United Progressive Alliance (UPA) was in power.
Mr. Raju made his self-gratification comment while unveiling revised draft CAP on 30th October 2015. He had released draft CAP on 10th November 2014. This column contains a few ‘never done before’ innovations in governance, which he should pursue.
At the event, Civil Aviation Secretary (CAS) R.N. Choubey reportedly stated: “The draft policy is in line with the Prime Minister’s directive that the policy should promote aviation in a big way and take flying to the masses.”
Ex-PM, late Inder Kumar Gujral, might be chuckling (if not ridiculing) in the heaven at this Big Bang CAP Show.
It was Mr. Gujral, who had set the CAP ball rolling about 20 years back from the Himalayan foothills. And the policy-makers are still having a ball with his initiative!
According to a UNI report dated-lined 7 June 1997, Mr. Gujral expressed extreme displeasure at India’s CAP at a meeting with businessmen while on visit to Nepal.
Read more: Civil Aviation Becomes Alice in the Wonderland of Policy Drafts
