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Topic : Corporate Governance
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Private airlines tactics to arm twist the government

Created by : santosh kumar, Marketing Manager, AUTOMOBILE  | 08 03 2009 09:58:13 +0000
Industry : Transportation/AviationFunctional Area : Performance(Corporate Finance)
Keywords : aviation
Activity:  303 views;  last activity : 07 06 2010 20:18:09 +0000

The private airlines have come together to hold a atrike to coerce the govt to yield to their demand of bail out package. When the market was booming they indulged into price wars that eroded their margins. Secondly they were going bullish on the double digits market growth & placed orders for bigger planes. Either the planes are running at half the capacity or the delivery orders are being deferrred ( which again is leading to penal charges by manufacturers). Please let me know your point of view ...

  
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It is wrong to put huge inconveninece to the travellers & use it to arm twist the govt
By santosh kumar, Marketing Manager, AUTOMOBILE  08 03 2009 09:58:13 +0000
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I support you that the private people are just trying to warn everyone.

But what about INDIAN AIRLINES, it needs Rs 2500 cr every year and atleast by OCTOBER this year for continuing its operations.

There is no co-operation by the govt also when it comes to policy or rising prices of fuel. Both have done mistakes. Unwanted bulk orders were placed by the private people for BOEINGs 2 years before which have not been delivered or now these people dont have funds to purchase. 

Lot of confusions inside.

MNCs due to cost-cutting did not give access for their employees to fly so majority prefered other modes and hence majority of the aircrafts are running half-filled.

 
By C Nijagunaradhya, Planning engineer, Aarvee associates  | 08 03 2009 10:27:39 +0000
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