Federation of Indian Airlines has asked the government to grant a bail out package for the industry for $1 billion which they want on an interest free basis for 2 years. The first of the order on the list is Kingfisher Airlines which seems to be working with negative margins right now due to slump is business. If the bail out is not released in time then the industry players will spread the cost to a smaller available pool of customers. This means that charges would be passed on for baggage processing and extra baggage handling. This is not hard to imagine for an industry which is worth Rs 30000 crore but is expected to book losses close to Rs 10000 crore this year.Sunday, October 12, 2008
Wings Clipped
Federation of Indian Airlines has asked the government to grant a bail out package for the industry for $1 billion which they want on an interest free basis for 2 years. The first of the order on the list is Kingfisher Airlines which seems to be working with negative margins right now due to slump is business. If the bail out is not released in time then the industry players will spread the cost to a smaller available pool of customers. This means that charges would be passed on for baggage processing and extra baggage handling. This is not hard to imagine for an industry which is worth Rs 30000 crore but is expected to book losses close to Rs 10000 crore this year.
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