I just about managed to squeeze in a plug for BRAC (due to length limits) in
the following comments on an article in rediff.
<Need for a balanced view
by philip thomas on Oct 10, 2008 02:22 PM
The word bailout may be a misnomer. ATF prices are too high due to "crazy
taxes". The price should be adjusted downwards according to international
benchmarks. Besides competing modes like rail and bus benefit from
subsidised diesel resulting in loss of short haul traffic to trains and
buses. Apart from the price factor there is the waste factor regarding fuel.
This is due to restricted airspace which results in circuitous routes. At
least 15% of operating cost can be saved on this account. Waste is also due
to slot restrictions at civil enclaves which results in congestion, circling
in holding patterns and queuing for take-off in the network. Then there is
waste on capital account. Airports are built in remote locations with
concessions to close busy civil enclaves. Not only do these airports become
costly due to add-ons like user development fees for passengers,
airlines,retailers etc but there is a great need to invest in high speed
surface transport links. The cost of disrupting convenient though congested
airports is rarely considered. Airline schedules go for a toss because some
carriers drop flights but others are unable to fill the gap. Aircraft
utilisation decreases increasing airline costs. All this is antithetical to
low cost connectivity by air which is the need of the hour in India. Our
competitiveness in low cost carriers vis a vis China etc deteriorates. Why
airlines are unable to make such arguments is difficult to fathom. We need
U.S.style BRAC urgently.>
http://www.rediff.com/money/2008/oct/10air.htm
In a reply and my rejoinder the following has appeared:
Re: Need for a balanced view
by RAJESH MEHTA on Oct 10, 2008 05:49 These airlines give 5-10
times high salaries to their staff compared to officers in goverment
organisations. They stay in Five staff hotels and now they want a bailout
from poor tax payers money. Can't these airlines reduce such stupid costs
rather then asking for a bailout.
Re: Re: Need for a balanced view
by philip thomas on Oct 10, 2008 07:48 PM The cost of ATF has to
be reduced by the government. The subsidisation of diesel for A/C travel has
to be stopped by government. The air space restrictions have to be lifted by
the government. The slot restrictions at civil enclaves have to be lifted by
the government. The closure of civil enclaves as concessions to new airport
developers has to be stopped -- by government. The slot utilisation for
sustaining connectivity has to be ensured by government. Developing a
competitive advantage in low cost aviation has to be actively promoted by
government. Let's get real, OK?
