(a) whether the Government have recently negotiated a number of new bilateral agreements and granted new additional rights to several foreign airlines;
(b) if so, the details thereof;
(c) the impact of this decision on the valuation of Air India and the bids received for the purchase of shares being sold; and
(d) Whether it has reduced the Government`s negotiating position?
MINISTER OF DISINVESTMENT AND MINISTER OF DEVELOPMENT OF NORTH EASTERN REGION (SHRI ARUN SHOURIE)
(a)&(b) The details have been given in the Annexure.
(c) During 2000-2001, Air India has earned revenue of Rs.245 crores from these commercial agreements and made a net additional profit of nearly Rs. 200 crores. Air India has also gained by giving connectivity to more places than it used to earlier. Without these commercial agreements, Air India`s financial situation would have been worse and its financial valuation would have been much lower for the purpose of disinvestment.
(d) No, Sir.
Annexure to the reply to parts (a) & (b) of Lok Sabha Unstarred Question No.250 for 20.11.2001 regarding Bilateral Agreement by Air India by Shri Gunipati Ramaiah.
Additional Traffic rights granted in 2001 (Seats/week for each side)
1. Russia - 500 seats (in phased manner) (12.01.2001)
2. Hong Kong - 1250 seats (19.01.2001)
3. Yugoslavia - 600 seats (new Agreement) (30.01.2001)
4. Germany - (2800 seats out of (6.2.2001) Indian entitlement)
5. SAS - 600 seats (27.03.2001)
6. Austria - 600 seats (in phased manner) (23.03.2001)
7. UAE (Dubai) - 2000 seats (for operations to (20.04.2001) Hyderabad)
8. Oman - 1000 seats (13.08.2001)
9. Kuwait - 700 seats (for operations to Cochin) (30.08.2001)
10. Singapore - 650 seats (1.6 B 747 unit, for (07.09.2001) operations to Cochin)
Total - 7900 seats/week (+ 2800 seats to Germany out of Indian entitlement)
New points of Call
UAE - Hyderabad
Oman } Kuwait } - Cochin Singapore } Germany } Hongkong } - Bangalore