1. HAJ TRAVEL REFORMS HAJ PILGRIMS MANAGEMENT PROPOSAL
TO ADDRESS THE ISSUES OF
HAJ PILGRIMS MANAGEMENT By
K. Rahman Khan
Deputy Chairman, Rajya Sabha

2. PURPOSE All-round criticism on the subsidy
Amount of subsidy increased from Rs.5 crores in to Rs. 250 crores in 2005
To have a perspective plan for future management of Haj travel, as Haj is a permanent event for Muslims
There is need to think towards a permanent solution to the problem of subsidy and Haj flights.

3. PROJECTION OF PILGRIMS
India is the second largest Muslim populated country.
The estimated population of Muslims is over 180 million.
30% of them belong to the middle and above middle-income group.
Over 30 million Muslims of India are obligated to perform Haj in the coming years.
Their number will be over 5 lakh annually, as against 1.5 lakh performing Haj.

4. THE MALAYSIAN MODEL
Malaysia has an excellent model for Haj management.
India can follow the Malaysian Model of “Tabung Haji” (which is parallel to Haj Committee).
Tabung Haji (Haj Committee) is one of the biggest financial institutions of Malaysia with their funds exceeding Rs. 40,000 crores.

5. BACKGROUND
The number of Haj pilgrims performing Haj through Haj Committee from India increased from 25,000 to over 82,000 during the last ten years.
There has been steady growth of the private Haj tour operators. Last year more than 50,000 pilgrims used their services and is expected to increase three fold in the next decade.
The pilgrims who perform Haj through tour operators do not get any subsidy.

6. JUSTIFICATION
Air India, is the main airline, catering to the Haj pilgrims.
Lack of spare Aircrafts with Scheduled Airlines, to carry a large number of passengers at a time.
The fares are high, as any Air carrier has to fly back without passengers.
Hence, there is a need for establishing an Independent Airline for the Haj pilgrims.

7. FEASIBILITY Is it viable?….YES
5 lakhs Pilgrims are expected to visit Mecca annually both for Haj & Umra.
This needs 4 Boeing 747 Flights daily
There is substantial traffic
Hence, it is an economically viable proposition.

8. Is it possible?….YES Liberal open sky policy
An Airline Company can be established for Haj and Umra.
Will have captive business with minimal overheads
The Company will be associated with Air India

9. How does it work?
Corporation will own and manage the aircrafts with minimum administrative staff
Technical know how- can be obtained from Air India
Air India can utilize the aircrafts for their operations also
Therefore, corporation will augment the fleet strength of Air India
Hence, it will be a practical and working proposition.

10. How does it benefit the Pilgrims?
Easy availability of aircrafts for pilgrims
Economical fares for Haj & Umra, far less than commercial airlines
Revenue to corporation by leasing the Aircraft, which can be used to subsidize fares
Thus the issue of the Subsidy can be solved once for all

11. How do we get the capital?
Capital required is about Rs crores
A lump sum equity from Govt. of India can be obtained upto Rs. 700 crores in lieu of the subsidy equal to three years.
Another Rs. 250 crores can be from foreign equity through FDI & NRI
Air India can be requested to invest 5% of the equity i.e. Rs. 50 crores

12. How do we finance the aircrafts?
4 to 5 New Boeing Aircrafts are required. Each aircraft may cost about Rs. 500 to Rs. 600 crores
To acquire 5 Aircrafts we require Rs crores
Loan from Aircraft Supplier up to Rs crores 
From Corporation capital Rs crores
Hence, resources can be generated

13. How do we mange the Corporation?
Haj Committee should be corporatised on the lines of Malaysian mode of “Tabung Haji” or a corporate body started separately for this purpose.
Apart from managing the Haj activities, the corporation can also mobilize savings
180 million Indian Muslims can mobilize savings of about Rs. 100 billion, as 18 million Muslims in Malaysia have saved upto Rs. 40 billion.
Need a strong organizational set up
Need whole hearted Govt. support
Above all need the will of the community to accept such a challenge

14. What next…..
A core group to be constituted to work out the detailed proposal
Need for a study of Malaysian model and its adoption for Indian conditions
To pilot suitable legal frame work

15. Thank you