1.Any airline is coming into picture after a large land area which might have been used for agriculture is taken away from farmers and given to Airport Authority. Thus high taxes are required to off set the social security of the people who lost the land. People would love to argue that the compensation is paid. But i would love to bring it to their attention that the amount is paltry and if you can't accept it think about this.Goverment will take away the house owned by you and giving you Government rates.
2. If AI needs bail out its because of private airlines only. No one knows why AI cancelled some of the most profitable routes wherein the load factor was always 100% (Kochi to middle east, Bangalore to some european nations etc). All these slots were given to private players.
3. The basic argument of economists for private sector is efficiency and if private sector is not able to deliver it why not government take over it rather than bailing it out? And if Air India can have a load factor of around 70% even after all this mess then it means that it is better managed than some of the private airlines.
4. If the KF goes busted i don't think more than 50000 will loose their jobs. However they can get jobs elsewhere. But what about the farmer deaths in the country which is on the rise. Take the case of Andra, Vidarbha etc.
The most sensible thing for the share holders of any private airline would be to ask for investigation into the affairs of it with the help of SEBI. The management has the responsibility to explain things to all the stakeholder.
2. If AI needs bail out its because of private airlines only. No one knows why AI cancelled some of the most profitable routes wherein the load factor was always 100% (Kochi to middle east, Bangalore to some european nations etc). All these slots were given to private players.
3. The basic argument of economists for private sector is efficiency and if private sector is not able to deliver it why not government take over it rather than bailing it out? And if Air India can have a load factor of around 70% even after all this mess then it means that it is better managed than some of the private airlines.
4. If the KF goes busted i don't think more than 50000 will loose their jobs. However they can get jobs elsewhere. But what about the farmer deaths in the country which is on the rise. Take the case of Andra, Vidarbha etc.
The most sensible thing for the share holders of any private airline would be to ask for investigation into the affairs of it with the help of SEBI. The management has the responsibility to explain things to all the stakeholder.
We could have accepted the losses had the airline tried something innovative and failed like using Bio-Fule to run the airline etc.
So now the update is that KF doesn't need a bailout... Correct, A King should never take help from another King... Now lets wait and see what all things Mallya got for the shareholders...
Hope you will find this book an interesting read from Flipkart....Southwest Airlines Crazy Recipes For Business
Pictures from Funtoosh.com and from Economic Times.
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