The next big fight between UPA and the Opposition could well be in the skies. A parliamentary panel-led by CPI-M's Sitaram Yechury has objected to a recent bilateral air agreement that India signed with Abu Dhabi to increase the number of flights between the two counties.
The Parliamentary panel has noted that this agreement, signed in April this year, will allow Etihad, Abu Dhabi's national carrier, to substantially increase their operations in India. And Abu Dhabi could soon emerge as a hub for international passengers travelling from India to Europe and America.
The parliamentary panel's observations come in the midst of letters written by senior MPs like Trinamool Congress' Dinesh Trivedi and Janata Party's Subramanian Swamy to the Prime Minister, questioning the Civil Aviation Ministry's move. Dr Swamy and Mr Trivedi have alleged that the government's decision to increase the number of flights between India and Abu Dhabi was aimed at facilitating the Jet-Etihad deal.
Jet Airways says that is not the case. A spokesperson for Jet Airways said, "It is unfortunate that these kind of baseless allegations are being levelled against the first successful FDI in the Aviation Sector."
In April, Jet Airways announced that it was selling 24 per cent of its equity to Abu Dhabi-based carrier, Etihad, to tide over its operational losses. And almost around the same time, India's bilateral agreement to increase flights to and from Abu Dhabi was signed.
Before the new bilateral agreement was signed, 55 flights were being operated between Abu Dhabi and India. Of this, Air India used to operate 37 flights a week to Abu Dhabi and Jet had 18 weekly flights on this route. Now, after the new bilateral air services agreement, Jet Airways would be entitled to operate 35 flights, nearly double of their earlier capacity.
Dr Swamy calls the agreement to increase flights between Abu Dhabi and India a sweetener for the Jet-Etihad deal. But top aviation ministry source strongly denied these charges.
"The Jet - Etihad deal is part of the FDI policy and the bilateral deal is separate. We have had similar bilaterals with Singapore, Oman and Qatar among others. Why did the MPs not raise it then?" asks a top aviation ministry source.
In a statement the airlines said, "The strategic alliance between Jet Airways and Etihad Airways is in the national interest and will benefit both the consumer and the travelling public. Jet Airways' valuation was on the basis of its share price. The suggestion that the valuation was 'sweetened' by the bilateral is plainly untrue."
The Parliamentary panel has noted that this agreement, signed in April this year, will allow Etihad, Abu Dhabi's national carrier, to substantially increase their operations in India. And Abu Dhabi could soon emerge as a hub for international passengers travelling from India to Europe and America.
The parliamentary panel's observations come in the midst of letters written by senior MPs like Trinamool Congress' Dinesh Trivedi and Janata Party's Subramanian Swamy to the Prime Minister, questioning the Civil Aviation Ministry's move. Dr Swamy and Mr Trivedi have alleged that the government's decision to increase the number of flights between India and Abu Dhabi was aimed at facilitating the Jet-Etihad deal.
Jet Airways says that is not the case. A spokesperson for Jet Airways said, "It is unfortunate that these kind of baseless allegations are being levelled against the first successful FDI in the Aviation Sector."
In April, Jet Airways announced that it was selling 24 per cent of its equity to Abu Dhabi-based carrier, Etihad, to tide over its operational losses. And almost around the same time, India's bilateral agreement to increase flights to and from Abu Dhabi was signed.
Before the new bilateral agreement was signed, 55 flights were being operated between Abu Dhabi and India. Of this, Air India used to operate 37 flights a week to Abu Dhabi and Jet had 18 weekly flights on this route. Now, after the new bilateral air services agreement, Jet Airways would be entitled to operate 35 flights, nearly double of their earlier capacity.
Dr Swamy calls the agreement to increase flights between Abu Dhabi and India a sweetener for the Jet-Etihad deal. But top aviation ministry source strongly denied these charges.
"The Jet - Etihad deal is part of the FDI policy and the bilateral deal is separate. We have had similar bilaterals with Singapore, Oman and Qatar among others. Why did the MPs not raise it then?" asks a top aviation ministry source.
In a statement the airlines said, "The strategic alliance between Jet Airways and Etihad Airways is in the national interest and will benefit both the consumer and the travelling public. Jet Airways' valuation was on the basis of its share price. The suggestion that the valuation was 'sweetened' by the bilateral is plainly untrue."
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