The
aviation sector has been hurt with rising cost of fuels, inability to meet its
day to day operational expenses and high user fees charged by AAI. Beside this,
rise in service tax rates also is not going to help these companies.
With
mounting losses, government’s consideration for 49% FDI in aviation sector is a
welcome relief. Air India is no
different to this scenario. We quite often see regular strikes by the employees
of the company for non receipt of their salary and for various other reasons. With
liabilities over Rs 40,000 crores, the aviation is surely headed down south.
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Government
is now going to infuse Rs 30,000 crores over the next 8 years. Capital infusion
will take place in phases. However this
isn’t the solution. Air India is in a vicious trap, for which GoI is happy to
be in.
Now,
why will the GoI, will not let Air India die or divest its stake? There are
many reasons. It is the only airline where ministers can fly free of cost for
“n” number of trips in a year be it for official or personal purpose, self or
family.
In
which other airline will you see flights delayed, or sent to a place, where
ministers close family members can board the flight?
It’s
all rubbish, by the government that Air India, the age old Maharaja is a matter
of pride and prestige for India and it cannot simply be left to fall
apart. With the amount of money they are
infusing to Air India, with the same money a lot more development can take
place around the country.
Giving
absurd orders for purchase of planes, poor customer service, bureaucracy and
red tapes has affected Air India. But there is a solution to any problem and
this one surely does. Japan Airlines was
facing a similar problem and was well turned around. Air India should take
lessons from Japan Airlines turnaround and implement it in a way to suite the
Indian needs. This needs to be done at the earliest.
The
government cannot continue to burden the tax payers for its own repeated
mistakes and needs to end this soon.
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