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26/12/2019 - Infrastructure

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December 26, 2019

The privatisation of Air India poses a challenge of integrating the North East with the rest of the country, and retaining air connectivity in the region. Explain (200 Words) 

Refer - Financial Express

Enrich the answer from other sources, if the question demands.

4 comments

IAS Parliament 7 years

KEY POINTS

·        Air India continues to bleed, with no respite in sight. This, after the government infused `17,320 crore of taxpayer money over the last five years.

·        An ethnically, culturally, and geographically diverse region, the NE is connected with the rest of the country through a narrow corridor of approximately 21 kilometres.

·        Within the NE, connectivity initiatives are underway, the most famous being the Bogibeel bridge that connects Dibrugarh to Dhemaji, supplementing the Kolia Bhomora Setu.

·        However, such projects have long gestation periods, and are focused on intra-regional connectivity. Air connectivity, therefore, continues to be the fastest and most economical means.

·        The government, in 2016, launched the regional connectivity scheme UDAN.

·        Some of the Alliance Air flights are operated under an MoU with the North Eastern Council (NEC) and get funding support.

·        Interestingly, Alliance has not turned a profit for several years, and most recent estimates peg its losses upwards of Rs 250 crore.

·        The NE flights, for the most part, are loss-making due to cyclical demand, irrational cost structure, and low passenger volumes.

·        In the event of a sale of Air India, any buyer will almost certainly revisit the airline network. Airports that will lose connectivity completely include Lakhimpur and Tezpur in Assam, and Pasighat in Arunachal Pradesh.

·        This poses a challenge for the government because the North East needs to be integrated with the rest of the country.

Reply

Vendhan 7 years

Tn ku

IAS Parliament 7 years

Try to explain why air connectivity is crucial and mention the challenges. Keep Writing.

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Shivangi 7 years

Please review. Thank you.

IAS Parliament 7 years

Good answer. Keep Writing.

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Chinna 7 years

Kindly review...thank you...

IAS Parliament 7 years

Good answer. Keep Writing.

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