Government gifts Indo-Vietnam air route to Jet Airways, not Air India

Update: 2014-09-16 00:19 GMT
In a major setback to national public carrier Air India, the Modi government on Monday handed over the lucrative Indo-Vietnam air route to private carrier Jet Airways. Incidentally, it was Air India which was supposed to sign the agreement with its Vietnamese equivalent Air Vietnam but was removed from the negotiations at the last minute. 

The agreement which was signed in the presence of Indian president Pranab Mukherjee and his Vietnamese counterpart President Truong Tan Sang will facilitate a daily flight, one each by both the airlines. It must be noted that one of the major reasons of Air India’s ill health was the fact, a number of lucrative Middle East routes were taken away from it and handed over to Jet Airways during the UPA regime. Chairman of Jet Airways, Naresh Goel after signing the agreement on Monday said, ‘The services will be very feasible and the route will be very profitable.’ He further added that direct flights will start from 5 November and booking for the same has already commenced. Goel, who expressed full confidence in the services being a success, said a Boeing 737-800 will be pressed for the everyday service.  

A senior official from Air India said, ‘Since independence, Air India, being the national carrier, has been given the first preference to start services to a new international destination. While the Vietnamese government gave its national carrier the opportunity, the Indian government chose to opt for Jet Airways thus depriving the national carrier of a big chance. Jet Airways is not completely national since its majority of share holding is owned by Etihad Airways.’    

Similar News