Wednesday, June 11, 2008
Airlines send SOS to the Prime Minister
In an effort to plead the case of the airlines, Praful Patel the Civil Aviation Minister along with the honchos of Jet Airways and Kingfisher are meeting with the Prime Minister. The ATF Fuel costs are through the roof, and now make up close to 50% of the operational cost of the airlines. India has one of the highest tax rates on ATF in the world, and they want to plead their case to reduce the taxes as the entire industry is bleeding heavily. Airlines have had to increase the ticket prices resulting in lower load factors ( fewer passengers flying) ...hence the mounting losses. My 2 paisas, with pending elections and petrol & diesel prices (for cars) at the highest rates, commodity & food prices also riding high, the administration will have a tough decision on hand. Do they try to help the airlines (in Politics = Rich) or use that to subsidize diesel (in Politics = the Not so Rich, more votes). इधर खाई उधर कूआँ (Idhar Khai Udhar Kuan: One the side is a valley on the other a well)
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