Airline Industry in India in turmoil

FLYING LOW

Since time immemorial (LoL), Air India and the erstwhile Indian Airlines have been a drag on the Indian economy and continue to be, absorbing resources at a rapid pace like a humongous sponge from science fiction. Only, they are very real. Theirs was not a case in isolation; many airlines across the world had troubled times and were supported by their respective country governments with the so-called noble intention of keeping the national flag carrier (JAL, Swissair, Cathay Pacific, KLM and Qantas being some examples) from crashing into some bottomless pit. Many governments who could not manage the airlines in an efficient manner have even sold off their national carriers to private operators. However, such largesse has rarely been given to private companies operating airlines, cases in point being TWA and PANAM which ultimately disappeared – remember the iconic building of PANAM in downtown New York which now bears the logo of Met Life! Our country is probably one amongst very few which have nationalized a private airline and then went on to rip off the tax-payers!

Today, we are faced with our country’s very own private carriers in a credit crunch and mounting losses – led by the ubiquitous Kingfisher and Jet Airways. Kingfisher has approached the Government of India with a request to work out a bail-out package and a misguided Minister for Civil Aviation wants the Finance Ministry and the Banks (which banks?) to help out Kingfisher with its finances, meaning, restructuring (again) their outstanding loans (read: conversion to equity) and deferring payments to oilcos, AAI and private airports.

If the Government of India succumbs, then there will be a line-up of other private carriers led by Jet Airways for a similar assistance. If it is so difficult to operate an airline company, then why did these guys jump on to the bandwagon? They probably were given assurances by the then incumbent government that in case they failed, they could always come to mama!!! And what about the tax-payers – they can keep cribbing and complaining like I am doing right now! Once the tax is paid, the money is no longer is yours, it is for the ruling party members to spend as deemed fit in their short sighted and opaque vision afflicted as they are with nepotism and corruption.

KALI