Even as troubled budget carrier SpiceJet is sinking, there's a strong feeling in the aviation industry that the government is not extending a helping hand. The industry feels some of the Directorate General of Civil Aviation's (DGCA) actions are only helping the airline's collapse.
One such voice is that of Capt GR Gopinath, pioneer of low-fare aviation in India. "SpiceJet needs to be given breathing time to find investors. The government has to figure out ways to support the airline in the absence of bankruptcy protection laws," he said.
Capt Gopinath says government and banks should make a distinction between promoters and the company. "If promoters are responsible, act against them and save the airline and jobs. Consumers will also benefit as it will prevent a monopoly from being built," he argues. In the US and other developed countries, there are strong and effective bankruptcy laws to bail out companies and safeguard jobs.
10/12/14 Praveena Sharma/Daliy News & Analysis
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One such voice is that of Capt GR Gopinath, pioneer of low-fare aviation in India. "SpiceJet needs to be given breathing time to find investors. The government has to figure out ways to support the airline in the absence of bankruptcy protection laws," he said.
Capt Gopinath says government and banks should make a distinction between promoters and the company. "If promoters are responsible, act against them and save the airline and jobs. Consumers will also benefit as it will prevent a monopoly from being built," he argues. In the US and other developed countries, there are strong and effective bankruptcy laws to bail out companies and safeguard jobs.
10/12/14 Praveena Sharma/Daliy News & Analysis
