PR discussions: [prpoint] Re: Blackmail by private airlines

sir,

i entirely agree with narendra jee's article . it is undeniable that private airlines are mismanaging their own finances and trying to
blackmail the government into submission on a rescue package, which it can ill afford. it will only lead to deficit financing and stoke the
fires of inflation further up.

why did kingfisher buy out deccan air : mallya never ever wanted to operate in the small fare segment , he wanted a distinct identity for Kingfisher as an elite airline -- he just wanted to get over the stipulation of the minimum years of service to operate on foreign routes which he got through deccan air acquisition which was an older airline. a good low cost airline was thus slowly strangulated to death by kingfisher. benefit for spice jet and indigo airlines, the best in the business for low cost airlines, a shakeout will determine which of these can survive.

worldwide recession has also hit the airlines industry and number of passengers coming to india on business is also shrinking despite reports that the world looks to china and india to bale them out of the worldwide financial crisis.

as narendra jee rightly says rescue packages are offered by government for official carriers. air india justifies it but not kingfisher,the game plan is to derail air india. one does not know if air india can surive even after the rescue plan, it has a babu aristocracy culture that will bring it down again.

questions to be answered:
1) IF AIRLINES ARE IN THE RED , WHY DO THEY GO FOR FLEET EXPANSION AND WHY DO BANKS LEND AT ALL KNOWING THE HEALTH OF THE AVIATION SECTOR?
2) WHY DONT PRIVATE AIRLINES CUT DOWN COSTS, SHRINK SUPERFLUOUS EXPENDITURE AND OPEATE MORE ECONOMICALLY , WHAT ARE THE AIRLINE CFOS DOING EARNING CRORES OF RUPEES AS SALARIES..
3) WHY DO CONGLOMERATES SUCH AS KINGFISHER WITH MULTI FARIOUS ACTIVITIES INDULGE IN USELESS PURSUITS SUCH AS F-1 CIRCUITS AND SPEND CRORES ON PUBLICITY WHEN IT CANT SUSTAIN ITS CORE BUSINESSES.
4) WHY TRY TO USE PERSONAL CLOUT AS BEING AN MP TO INFLUENCE GOVT TO DRAW ON TAX PAYERS MONEY TO BAIL OUT THE AIRLINE BUSINESS THEN , AVOID EXPENDITURE SUCH AS F-1 OR IPL IF YOU DONT HAVE THE MONEY.
5) WHEN YOU DONT HAVE MONEY TO BUY DAL SABJI AND ATTA AND RICE WHY SPEND MONEY ON BASKIN ROBBINS ICE CREAM? SIMPLE ECONOMICS.
6) TIME PRIVATE AIRLINES LEARNT TO MANAGE THEIR AFFAIRS INTELLIGENTLY WITH THE BEST BRAINS INSTEAD OF BEGGING THE GOVERNMENT FOR BAILOUT PACKAGES, ULTIMATELY THE TAX PAYER GETS HIT BADLY ONCE AGAIN.

CHEERS
ASHOK
6)

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