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Do private airlines deserve a bailout?

Published: Sunday, Aug 2, 2009, 21:51 IST
By Namita Handa & Nitin Kumar | Place: Mumbai | Agency: DNA

The private airlines’ demand for a Rs10,000-crore bailout package has been refused by the government. Was the demand justified? DNA ask experts and Mumbaikars...

It would have caused inconvience to many
I think the government should have helped the private airlines. They could have taken some concrete action to ensure that such asituation doesn’t arise again. Today, there are so many private airlines and if they would have gone on strike then it would have been a major loss for the government as well as the private airlines. This move would also cause some inconvenience to the passengers who can not possibly delay their trip by a day or two. Keeping all this in mind, it's good that the union minster of state for civil aviation, Praful Patel has urged the private air operators to come forward for negotiations. Air India is also planning to increase the number of flights on August 18 to minimise any inconvenience to the passengers.
—Mayank Negi, business technology analyst

Negotiation is the only way out
The government must look at the airlines issue seriously because every time we see this happening it is not right for any union to go on strike. Constructive negotiation between both parties is the right way to resolve the problem. Private airlines were demanding a bailout package of Rs10,000crores in the form of lower sales tax on aviation turbine fuel (ATF) and lower airport taxes from the government which is not a small amount. This strike would have affected many people as only private airlines provide good service to the travellers. I trust private airlines more than the government ones. Due to strike many people would have to reschedule their plan. In case of an emergency what other option does a person have?
—Paresh Panchmatiya, businessman

Expert view
There has been no cancellation of tickets
Till now my travel agency hasn't received any calls relating to the cancellation of the tickets for August 18. No decision has been finalised yet, talks and discussions will be held between the government and the private airlines. This is at a very nascent stage and we must not jump to conclusions.

Whether the chosen method is right or not I am not in a position to say because nowadays everyone is taking resorting to extreme steps so get their demands met. This is a genuine problem; the authorities concern must take this into consideration. So what if they are private airlines, they are serving the nation. An air fuel expense does constitute a big amount of total operational cost.

There might be some inconvenience caused to the passengers but then the airline authorities have promised to refund their ticket money. So there won't be much problem or confusion among people.
—MZ Siddiqui, managing director of Fourways Travels Pvt Ltd

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