Kerala - Others   

NRIs to pursue proposal for airline

Vimala Vasan

letter from thegulf They say NRI funds can finance the proposed State project Keralite NRIs in the Gulf will soon launch a campaign to press for a State-owned budget airline in view of a decision of the Indian civil aviation authorities not to allow international operations for new airlines.

ABU DHABI: Keralite Non-Resident Indians (NRIs) in the United Arab Emirates are determined to pursue their dream of having their own State-based budget airline operating flights to the Gulf despite not-so-encouraging reports back home that the Indian civil aviation authorities are disinclined to permit immediate international operations for any new airline.

A signature campaign will be launched shortly by NRIs here, with the NRI welfare organisation Pravasi Bandhu Welfare Trust spearheading the move with support from local and Indian organisations. The campaign will be followed by a memorandum addressed to the Indian Prime Minister Manmohan Singh, the Civil Aviation Ministry and the Leader of the Opposition in Parliament.

K.V. Shamsudheen, Chairman of the Trust, told The Hindu that despite the launch of the budget carrier Air- India Express, Gulf NRIs are being shortchanged as fares to Kerala are still on the higher side. Keralite NRIs have no other options if they wish to fly directly back home, he said.

``The signature campaign will focus on a series of issues that we think require to be addressed by the Indian civil aviation authorities and the Central and State Governments. We have for long been demanding that India adopt an open-sky policy and permit other airlines to operate to Kerala as well as other parts of India. We are requesting that the proposed new airline to be floated by the Kerala Government and other private airlines should be immediately permitted to operate flights to the Gulf. It is unfair that Kerala is being used as a `feeding centre' for Air-India and Indian Airlines and other airlines are being denied entry. Since the move to clamp a five-year ban on international operations for new airlines is only a Cabinet decision, it can be reverted and we are urging the authorities to consider our request in the interest of middle and low income expatriates,'' he said.

The floating of a Kerala airline will also help to boost tourism to the State and to the country as a whole, he said. ``Low fares on the sector will increase traffic. For instance, Far Eastern airlines were offering flights with a five-day stay in Singapore for only Dh.1,800 during the peak Id festival season. Kerala is half the distance in comparison, but we have no such attractive offers for visitors at present,'' Mr. Shamsudeen said.

Surplus NRI funds can finance the airline project and other important projects in the State, he said. NRI remittances from the Gulf are otherwise being squandered in non-productive ventures, he added. The new Kerala airline is being planned as a joint venture with NRIs. He hoped the signature campaign and support of concerned organisations would help put pressure on the Central Government to change its stand on the issue.

Rupee slide benefits NRIs

The significant slide in the value of the Indian rupee against the dollar has benefited NRIs, particularly those sending remittances back home to their families on a regular basis. As the UAE dirham is pegged to the dollar, the slide in the value of the rupee has meant that NRIs here pay less dirhams to remit rupees back home. ``The fall in the rupee rate to a range of Dh.80.55 to Dh.81 for Rs.1,000, compared with nearly Dh.85 a couple months ago, has spurred remittances. Though our customers send money home every month irrespective of the rates, they are now watching the fluctuation closely and sending more funds when the rates go down,'' a senior official of the leading UAE Exchange Centre said. The rupee's slide may also spell good news for Kerala banks as the development coincides with their decision to hike interest rates to attract more NRI deposits, after a dismal lull in flow of deposits over the past year.

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