Invest and keep in Airlines on the sharemarket. In future it is going to be the most important and most used mode of transport in India.
This was a piece of advice given to me by a Stock Market Investor around 7 years back. But the current situation with most of the Airlines makes me wonder if the future of Airlines is good in India.
India is one of the fastest growing economies. Air travel is now acceptable to even a common person as train travel. One hardly finds seats empty in Airlines. Then what is it that Ails our airlines in India?
Why are there problems with Air India, Kingfisher, Jet…you name it. All are in problems?
Some blame it on Government policies. Some blame it on compulsion to fly non profitable segments. Some blame the airlines for diverting funds.
For me the issue is too complex to understand. Government says privatization will help the ailing National Airline. On the other hand Private players are in a soup. So will privatization of Air India help, when private airlines like Kingfisher and Jet are asking for help from Government? All seem to be flying around in circles.
In all this the people who suffer are just not passengers, but also the staff, who have not been receiving their salaries on time. Irrespective of the huge amounts they receive, it is obvious that their expenses will be as per their income. And now that the income has reduced or stopped, they are facing hardships.
It has become a bad Ailment for our Airlines, with no clear policy … hopefully time will heal…till then grin and bear….
Interesting to see Government allow 49% FDI in airlines thru Budget 2012, and will be more interesting to see if Foreign companies are interested in Aiding our Airlines already in red....
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