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Business News/ Politics / Policy/  Ministry goes slow on airline ombudsman
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Ministry goes slow on airline ombudsman

Analysts say the much-delayed initiative may have to be left to next government to implement

Indian airlines such as IndiGo, Jet Airways, Air India, SpiceJet, GoAir and Air Costa fly nearly 60 million people every year on domestic routes. Photo: Hindustan TimesPremium
Indian airlines such as IndiGo, Jet Airways, Air India, SpiceJet, GoAir and Air Costa fly nearly 60 million people every year on domestic routes. Photo: Hindustan Times

New Delhi: The aviation ministry has restarted the process for setting up an ombudsman for looking into complaints from airline passengers, but an analyst said the much-delayed initiative may have to be left to the next government to implement.

The ministry has “decided to consult stakeholders regarding setting up of an ombudsman for civil aviation sector in India as an alternative dispute settlement machinery", it said in a statement on Thursday, seeking stakeholder comments until 15 April.

“In sectors where market forces play a lead role in providing services, such as the aviation sector in India, it becomes necessary to provide a window for grievance redressal of passengers and also an effective mechanism for dispute resolution," the ministry
said.

Crucial consumer-facing sectors in India such as banking and electricity have ombudsmen but an aviation ombudsman has remained on paper for the past three years, possibly because of pressure from airlines, according to Jitender Bhargava, former executive director of state-run Air India Ltd.

The aviation ministry had first set up a working group in 2011 to form an ombudsman for the sector, and received recommendations soon after.

Indian airlines such as IndiGo, Jet Airways, Air India, SpiceJet, GoAir and Air Costa fly nearly 60 million people every year on domestic routes.

Airlines didn’t offer any comment for the story.

Bhargava said the aviation ministry’s move to relaunch the ombudsman process appeared to be an attempt to deflect criticism on its decision to award more bilateral flying rights to Dubai.

India granted 11,000 airline seats to Dubai earlier this week, which will expand the footprint of Dubai’s flag carrier Emirates while hurting the prospects of Indian airlines such as Air India and IndiGo.

Air India and IndiGo had at a meeting of ministry and industry officials this past fortnight said there was no need for granting more seats to Dubai.

Air India, in fact, sought a curtailment of seats and agreed to support the ministry’s recent decision to allow Airbus A380s, the largest passenger planes, to fly into India only if international airlines used up the seats already allocated to them.

The Comptroller and Auditor General, the government auditor, has previously criticized the ministry for giving thousands of seats to Emirates as one of the reason for Air India’s current plight.

The aviation ministry also faces a court case for giving thousands of seats to Abu Dhabi last year in a move that benefited the regional airline Etihad Airways PJSC and was seen as one of the reasons for its investment in Jet Airways (India) Ltd.

“This (reviving the ombudsman plan) could be a way to deflect attention from Dubai seats," said Bhargava, while emphasizing the need for an effective redressal mechanism for airline passengers.

“While you (DGCA) give one month for public to respond to whether AirAsia India should get a licence or not, which is a bigger issue, you give more than six weeks for people to respond to an ombudsman when the basic groundwork has been done already," Bhargava added, questioning the aviation ministry’s commitment to setting up an ombudsman.

A new government is expected to take over after the general election that’s due by May, which leaves the present government hardly any time to set up the ombudsman.

Aviation minister Ajit Singh declined to comment.

Explaining why an ombudsman is critical for the aviation sector, Bhargava said though the ministry had decided last year to allow airlines to sell services separately from airfare on the pretext that it would lower fares in the long run, ticket prices hadn’t shown any sign of a decline.

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Published: 27 Feb 2014, 11:35 PM IST
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