Monday, December 28, 2009

Crisis of airline industry-what is the responsibility of govenment?

Year 2006 and 2007- The year when airline industry was bullish and our aviation minister was riding on this tide. He was being hailed as a man who changed the civil aviation scenario in India. Entry of number of private companies in this sector made it possible for average middle class indians to fly. Suddenly civil aviation sector became a brightest sector and was in news everywhere.Then came 2008, which brought unprecedented surge in oil price and nightmare of airline industry started from here. Afterward recession hit it more and once a rising star, it started drowning in this flood of misfortunes.Now came the pleas of industry to government to bail them out, who is subjected to estimated loss of whopping 10000 crore. Now my question is why govenment is shying away to bail them out, as it is doing in case of Air India? The demands of airline Industry are to reduce the cost of ATF which is in india 60% higher than other parts of the world, and in form of charge cut, like the one which is levied upon them for using airport.Its not been a long time when we used to give example of our civil aviation industry to attract the private player in other sectors. Now is this the example we are going to present them, how step-motherly we treat our private industry in compare to our PSU. When a child in a house sneezes then its the house owner’s responsibility to keep him healthy, but when all children in state start sneezing then it becomes the responsibility of government to take care of them and ensure the healhty environment.present crisis in airlines is something which is caused by external factor. It has less to do with airlines own failure or incompetency. Government must address their grievence.

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