Thursday, May 23, 2019

Ailing airlines: Victim of the government’s meddling hand

By now, almost every industry analyst has begun to write-off Jet Airways. Jet had big dreams. It had benefitted from many favourable government policy decisions – right from being granted favourable slots to having a policy crafted by the government which allowed its vessels to fly overseas.

But then, like so many industries which were once backed by government favours and largesse, Jet also fell.  A similar fate could afflict Air India as well. It remains the biggest beneficiary of government largesse. It should have been privatised or even closed down long ago. Yet it survives, burdening taxpayers with more write-offs. That could be because it would not have suited the privileged.

Ministers get upgraded to first class automatically without having to pay for it. Ditto for senior government officials and select national award winners. Such benefits would not have automatically been extended to them by private airlines. The payment terms would have been more transparent.

And yes, occasionally, you have the unsavoury incident of an award winner flying executive class after paying economy class fares, yet billing clients’ business class fares for reimbursement. And you also have elected representatives beating up airline crew (and breaking their spectacles) without even being jailed for violence – a cognisable offence. Such opportunities too might have been denied by private airlines.
23/05/19 RN Bhaskar/Free Press Journal
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