PPRuNe Forums - View Single Post - Air India scams and inefficiency - hilarious!
Old 5th Jun 2012, 10:57
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Wannabe Flyer
 
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It is very easy to blame a government for everything and anything. This is an easy way out. Now to analyze your points

1) Fuel is heavily taxed: Correct it is especially at the state level and every city is different. However there are some states and cities that have dropped taxes to assist. Taxes on fuel are applicable only on domestic flights and there is low or no tax on international flights.

2) delhi Airport is a private operation with govt as a stake holder. After the billions that were spent on it a method to recover them is needed. Yes fees have been raised 775% but when the base number was so low ($1 or less in some cases) why don't we do an apples to apples comparison on a global basis as to what others charge. Same for landing fees which have been raised to the higher side. Cost of improving infrastructure when the country is broke due to people not paying their taxes.

3) Politicians lining their pockets instead of spending on infrastructure. Oxymoron actually as they cannot steal directly. Bribes work if they award contracts and these guys are spiffy and are ensuring they award good contracts and take money. However in Delhi airport case it is a private project so confident politicians lined their pockets once while awarding it to GMR and now it is chugging along.

Indian operators have suffered because of various issues and inefficiencies built into the way they operate. Most of them are working on the ego of their owners with little or no experience. For all that is said of Indigo they are not cheap but marginally cheaper on some routes than others and in some cases strip you naked with their monopoly, yet they seem to be surviving. KF, GO, Spice are suffering from owner whose mind is distracted in several projects. Jet the little mans ego is too big for his own good and he is pulling along because of cash flows and AI inefficiencies. However he is one of the biggest lobbyist against FDI in Civil Aviation as his skeletons will come tumbling out.

In a nut shell while India is a tough environment to operate in, it is possible to make money if rational thoughts prevail and not 1 buck fairs and market share and brand valuation thoughts. Each Indian airline has suffered due to ego problems and the one that is pulling thru has played low key and kept out of the lime lite. Said on this forum earlier and rightfully


Arrogance is there, it now takes intelligence to convert that into success.
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