Parliamentary panel wants checks on airline mergers

"Air India could have approached other airline organisations," it said, adding the carrier could have anticipated the impending shortage early had there been a constant assessment of available aircraft capacity.

The parliamentary panel said adequate contingency plans should be prepared, including standing arrangements for lease of aircraft during exigencies by following proper tendering process.

It also criticised the Civil Aviation Ministry for the under utilisation of traffic rights given to private airlines to fly to the US and Belgium.

"Despite the permission granted to private carriers to operate services to USA and Belguim, the services have not commenced and it is surprising that the ministry has left the matter to the commercial judgement of the concerned airlines," it said.

The committee said there should be proper monitoring of the permissions granted by the ministry and "it must be ensured that the actual operations are started by the operators so that the stated objective of optimum utilisation of traffic rights is achieved."

It also said the Civil Aviation Ministry must take necessary steps to ensure that time schedules fixed for the delivery of aircraft to Indian Airlines and Air India were adhered to so that "the national carriers are able to take maximum benefits of exemption from payment of tax under Section 10 (15A)".