Recent reports had indicated that the association had serious reservations against both the developments and were worried about the safekeeping of their professional interests. The general secretary has stated that the association is, in fact, all in favour of the dilution of government equity as it is in the larger interests of the organisation.

Meanwhile, the association's Hyderabad branch has also issued a notice stating that it "has perused a press publication on 21st July, 1998 with regard to stalling of the Tata Airline project...and it is pertinent to state that..the statements made by PD Shenoy, deputy manager (commercial)stand revoked as he was suspended from the association's primary membership on April 1st 1998."

The association comprises the domestic carrier's middle-management staff up to the level of managers. Commenting on the Tata project, a senior IA official said, "The project will actually propel IA to be more competitive and flexible, especially after a partial divestment." As per the disinvestment plan, the government will dilute its stake to 49 per cent, while the employees will be given stock options for another 10.60 per cent of the equity. Other financial institutions, and public will hold the balance.

A totally contrary reaction to both issues is being given by the airline's Air Corporation Employees Union. Members of this union, along with colleagues from co-ordination committee of trade union of the civil aviation sector, including the Airport Authority of India, private domestic airlines and Pawan Hans, have planned demonstrations against the Tata project and IA's divestment plan.

In a pamphlet,circulated during a demonstration in Mumbai, the union has demanded blocking the Tata project, privatisation of airports, disinvestment of IA and Pawan Hans, to protect the civil aviation sector from multinationals.