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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) 

ReferFinancial Express

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

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IAS Parliament 5 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.

Vendhan 5 years

Tn ku

IAS Parliament 5 years

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

Shivangi 5 years

Please review. Thank you.

IAS Parliament 5 years

Good answer. Keep Writing.

Chinna 5 years

Kindly review...thank you...

IAS Parliament 5 years

Good answer. Keep Writing.