So Air India has a debt of Rs 40,000 crore (about $9 billion) and seeks another $500million loan from the government (http://in.news.yahoo.com/vayalar-ravi-cracks-whip-on-air-india-top-brass.html).
While the article in the link above doesn't talk about the P&L of Air India, it is quite likely that they are making big losses and having a huge cash flow problem.
Now we have other carriers like Singapore Airlines which perhaps is doing much better. We have our own Jet Airways which is doing ok.
Why do we need to pay 1crore/annum (approx $250,000 annually) salary to people and still have this mess? The government is firing a few of these employees. How about firing a chunk of unproductive workers? Whatever loss the government is making comes out of taxpayer's money.
But then we have a trade union. And it's a sacred cow: giving guaranteed jobs. One of the government's objectives is to help the poor. Are we helping the poor better by running this airline or would we help better by divesting off?
But then we have a trade union. And it's a sacred cow: giving guaranteed jobs. One of the government's objectives is to help the poor. Are we helping the poor better by running this airline or would we help better by divesting off?
Probably the best thing would be to take the Airlines through an IPO and hand over management to someone else and get rid of this monkey(s).
monkeys are everywhere.. on the cricket field. in the offices, and the airlines people are just of "em..
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