The Airlines imbroglio

AIRLINES IN LIMBO

The airline companies in India seem to be in limbo! Let us see the condition/status:

a) Air India/Indian Airlines – Forever running in losses and sponging on the tax-payers money at the cost of development of human resources or industry in the country.

b) Paramount Airlines – Wrapped up due to losses and unable to clear loans.

c) Sahara Airlines – After incurring losses sold to Jet Airways.

d) Kingfisher Airlines – On the verge of bankruptcy.

e) Jet Airways and Spice Jet – Have reported heavy losses for the latest quarter of FY 2011-2012.

The media made brouhaha about Vijay Mallya of Kingfisher approaching the Government of India for a bailout and vociferously supported by the Minister for Civil Aviation. Now, Vijay Mallya says he never approached the GoI for a bailout. Does that mean the Minister for Civil Aviation took suo moto action? The FM, the PM and the Banks equally vociferously denied that any bailout package was being worked out or even that it was possible!

Analyze the above and draw your own conclusions – why did the Minister for Civil Aviation take suo moto action (if Vijay Mallya is saying the truth)? – Possibly,

a) Vayalar holds a sizable share in one of the above loss-making private airline and was playing his cards to get a bailout package worked out per se!

b) Vayalar owns Paramount and would have approved a bailout for it had the Kingfisher issue worked out!

c) Somebody promised a huge payback to Vayalar if he could get a Government bailout worked out!

Take your pick!!!