New Delhi: In light of the central government’s move to withdraw Haj subsidy, a former Air India executive director has rubbished claims that the subsidy was meant to help the national carrier’s dwindling state.
“It is absolutely wrong to say that the subsidy was meant for Air India. The Haj committee is trying to malign Air India,” said Jitendra Bhargava, former executive director, Air India.
The Centre on Tuesday announced that the government would stop Haj subsidy starting this year and hence save Rs 700 crore, which would be used for the education of minorities, particularly girls.
Minority Affairs Minister Mukhtar Abbas Naqvi on Tuesday said the decision is in line with the government’s agenda to “empower minorities without appeasement”.
Meanwhile, Naqvi said that for the first time in Independent India, 1.75 lakh pilgrims will go to Haj without a subsidy, a rise from the Rs 1.25 lakh last year.
“The Haj authorities who used to enrol the pilgrims would get the total airfare altogether, since the amount can’t be given to individuals, it was given to Air India on the basis of the number of passengers being transported. In Air India’s case, the planes would first carry the pilgrims to Mecca and return empty. It would again fly without passengers to bring them back. When it’s a scheduled flight, the plane does not run empty. This is a simple concept that the Haj authorities have failed to understand,” added Bhargava.
The Telangana State Haj Committee, in an official statement, had earlier said that they want the Union government to stop making Air India the official carrier for Haj pilgrims as it charges a lot more than necessary. The Jamaat-e-Islami had also asked the government to call for global tenders.
“Air India takes a plane on lease specifically for Haj and a short term lease of an aircraft is always more costly as compared to owning it. When you take an aircraft on lease for two-three months it always costs more. So, there was a full cost estimation done by the Air India and submitted to the ministry, after which the carrier is reimbursed. The Haj Committee also forgets that the pilgrims are also given freebies such as umbrellas and other things when they travel Air India,” said Bhargava while explaining why the subsidy was not a part of Air India’s income.
“We don’t just fly them around but spend on food and other things. Special meals are provided, but Air India never spoke about these things because it is a sentimental space,” said Bhargava.
The airline, which is completely owned by the government, is weighed down by a debt of around Rs 52,000 crore. Minister of State for Civil Aviation, Jayant Sinha has laid down a timeline for the strategic disinvestment of state-run carrier as the Centre is likely to hold only 26 percent of Air India shares.
The Union Cabinet chaired by the Prime Minister on Wednesday approved 49 percent foreign direct investment in Air India, which means foreign players cannot hold more than 49 percent of the total stakes in the national carrier.
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