Why did the airline strike fail?

Mumbai: Jayesh Desai, national director of infrastructure at E&Y, said. "The demands of the airline industry are justified. But the method chosen by the airlines may not be absolutely the right one. There should be no reason why the government must bail out private airlines."
Well, what the airlines are asking for—lower taxes, airport and other infrastructure fees—is nothing new.
But what was new was the vigour with which FIA was putting up an united front, one that soon collapsed under its own contradictions.
In the past too, the FIA took time to resolve industry issues as it had conflict of interests between the flag carrier Air India and private airlines. Only last year, Air India opposed Vijay Mallya taking over the reins in his hands. In the current environment, sources tell NDTV that LCCs saw it against commercial interests to call for suspension of services, more so in monsoons when the load factors are dipping.
No doubt a divided FIA did not push the demands of an industry, which is competing in a negative environment. Analysts root for a policy debate on aviation but the big issue is if the government is heeding.
Praful Patel, Minister of State for Civil Aviation, said, ".. We understand aviation is very important to the economic development of the country but to say we will cause inconvenience to the passengers and to the people, I think, that is not acceptable."
Meanwhile, the airlines feel they have been taxed to death and the operating environment is choking them.
But the question to be asked is—did the airlines in India really bite more than what they could chew when it comes to cost competitiveness and route expansion?
03/07/09 Manisha Singhal/NDTV.com

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Categories: Indian Aviation- In General Aug 2009