Let them learn from low-cost airlines: Left

New Delhi: Left parties on Thursday said the group of ministers constituted to assess the health of airlines should not be converted into a forum for organising a bail out package for private airlines. “The government’s priority should be Air India. If low-cost airlines are making profits, others should wake up to this reality rather than asking for bailout. After all, they are paying the same taxes and the same fuel costs as the low cost carriers,” said CPM polit bureau member Sitaram Yechury.
CPI leader Gurudas Dasgupta said it was yet another example of crony capitalism. “Obviously, GoM is constituted to help the two leading private airlines who are said to have strong connections with those in charge. They have always got patronage from government in sanctioning of routes, easy credit and bank loans,” Mr Dasgupta said.
In what strengthens the case of those opposing bailout package for private carriers, there have been reports that low-cost airlines have posted impressive profits in the first quarter. Contrary to guesstimates in the industry, Indigo’s profits for the first quarter is over Rs 100 crore. Carriers like Indigo are not in agreement with the demands put forward by full carriers.
14/08/09 Economic Times

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Categories: Indian Aviation- In General Aug 2009, Low Cost General Aug 2009