A few years ago there was a run on a bank…surely nobody wants me to name the bank, correct?
Well I will not.
RBI went out of its way to rescue it. When I was talking to somebody in the management of that bank, he said ‘It is actually RBI’s problem’ – we have no known promoter, so it hardly matters…..
Now we are talking of a ‘Kingfisher’ bail out.
The way Indian promoters work – and airlines promoters work, the promoter would have got his money back long ago. A public blog is hardly the place to discuss how. Now what is left is the money of the small shareholder, the banks who have lent money, statutory dues, lease rent payable to the lessors….
So the civil aviation ministry is helping the finance ministry to reduce losses, that is all.
Principally if there are 4 airlines – and in terms of profitability they are ranked A, B, C and D – the law says ONLY and ONLY if ‘D’ dies, can the other 3 be profitable. Simple law of the jungle. Our politicio-economist PM should not go on air and say ‘we will bail out KF’. Sounds laughable too – SBI funding AI and KF to undercut each other – and when the bleeding hurts, SBI gives a concession on interest and moratorium on loan repayment. L O L…
Let one airline go down MMS (Dr. ManMohan Singh)…no tears will be shed. If you rescue it, it is like penalising Indigo and SpiceJet – somewhat like farmer suicide…not fair on the efficient ones…
Post Footer automatically generated by Add Post Footer Plugin for wordpress.