Should private airlines be bailed out??

[ROHAN KACHALIA]

After Air-India, other private players have asked the government for a bailout and also an open dialogue and have threatened to go on strike on August 18. Is bailing out these private airlines justified??


Lets debate on it......

 

[rajeshthepilot]

There is no greater example of making a mockery of democracy than this...Why should the govt be responsible for indiscriminate expansion planned by these private airlines ? Is Mr Mallya running out of ideas to make his business profitable ? If so, he should quit the airline business ASAP.

 

[kiranmayi16]

no they should not be bailed out as i believe they stand as a mark of standards and with out them standards will go down miserably

 

[greatdude10]

Efforts shud be made to help out the troubled airlines especially since their problem is related to ATF

 

[amit_singhal]

No in my view Private Airlines should not be bailed out since they think tht this is another way of increasing their business.

 

[sidharth_1977]

No, As the private airlines are cash rich and do not need any kind of support.

 

[deepakraam]

Private Airlines are not cash rich.Almost all airlines are running red.It will take atleast 4-5 yrs to break-even.Rising crude prices are killing the reserves.But Govt can lend a helping hand by reducing sales tax for ATF but bailing out private airlines it a big task.Moreover all airlines are big enuf for a bailout.Probably,Airlines can form a consortium and workout modalities which can reduce their services and they are reduce the services to most crowded sector and increase the service to regions which needs more.In that way the services are streamlined and they can also increase the coverage area and also target new segments.

 

[nilesh0386]

The habit of running to the government should not be encouraged.
anyways glad the strike is called of

 

[gerajgs]

Taking into consideration the impacts of the airlines in other industries the goverment should help the private airlines to serve better , at least by reducing the parking fares.

 

[ramaswamy22]

I dont think the airline industry needs a bailout at this stage. They are wholly responsible for the current mess they are in and it is not fair to expect the govt to bail them out.

 

[singhal_amit]

I think bailout of the private airlines is not any of the available options since thr r other ways as well as described by the other members to solve this issue..

 

[singhal_amit]

i think private universities should not be bailed out by the government since they r having lot of cash reserves........

 

[sandipkumarr]

good question.. would want to reply once i have a definite answer ;-)

 

[greatdude10]

I dont think the govt should go abt bailing out everybody. Companies need to rely upon themselves for their success.

 

[greatdude10]

However some relief can be given as far as the oil prices go coz they r unusually high in india

 

[Arvind Naidu]

All big guys start an airline to show they are BIG. In fact by the time they realize their dream, they surely realize that they are cash strapped. Rather than bail out, government could reduce ATF taxes and should consider providing long term financing with minimum fixed interest rates. At the present juncture and the current economic condition, shutdown of any airline would mean thousands of job loss and possible a loss of revenue to the government by means of taxes, both from airlines as well as their employees.

 

[mohit21mankani]

i guesss no bec if they can't survive let them tang down

 

[abhishek.abhi1221]

hey can anyone help me in downloading a project from this site

 

[uytrewq]

I guess the word bailout is used rather loosely in discussions in various forums. The government should seriously consider a 'conditional bailout' of the private airlines. All airlines opting for the bailout package should be asked to follow certain regulations - subject to a continuous monitoring mechanism by the government.
A bailout becomes necessary because it was only with the influx of private airlines has air travel come so cheap..with no private airlines there may not be low cost flying options.

 

[pires7]

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