Sep 15, 2012

Foreign airline investment - What are people saying?





Vijay Mallya
"Bold decisions taken by the government. Fantastic to restore confidence and kick start economic growth..."

Jet Airways 

“We welcome any policy initiated by the government.”

SpiceJet CEO Niel Mills 
“There have been preliminary discussions to check in principle whether there is interest on both sides and the confirmation there would be ‘yes there is’

Capt. Gopinath, MD, Deccan Aviation 
"I hope the government will not step-back as it had done in the case of the retail sector. The government has shown resolve to silence the harping on indecisiveness. I think it will be very good for customer as it will allow new airlines to enter the fray and increase the competition, provide more choice and offer competitive fares".

Aviation minister Ajit Singh
"The airline sector is facing serious financial stress and banks are not willing to give any more working capital loans. Now the mood will change and airlines can look forward to funding internally and externally"

"Even in a worst case scenario during this global slowdown, our growth rate won't be below 5%. The aviation ministry is pushing ahead with major reforms and we have asked the finance ministry to declare jet fuel as a notified good to rationalize its price"

"The current downturn is temporary. Indian aviation, in the long run, has a great future and we are laying the path for that."

President, Emirates Airlines Tim Clark 
“We are looking, we are very interested in civil aviation in India but we are not getting involved in investment with some of their carriers.”

CEO, British Airways Willie Walsh 
“As long as the Indian government continues to provide support for Air India, it distorts the market, it distorts competition, it creates uneven playing field and I can't see how many airlines would be interested in investing while the market continues to be like that"

Etihad 
“We see equity as a positive reflection of our partnership approach; we will make such investment where we believe the commercial prospects are strong, where we see like-minded business philosophies and where we believe such commitment will be welcomed."

Lufthansa 
"Not interested" in any investment in any Indian carrier

Singapore Airlines
No comment



source : Mint, TOI, FirstPost, Hindu, MoneyControl, Ibnlive, ET

11 comments:

  1. Capt.Ranganathan15 September, 2012

    SQ-No comments. BA -“As long as the Indian government continues to provide support for Air India, it distorts the market, it distorts competition, it creates uneven playing field".
    Those are two major airlines with proven track record and success stories. Growth without safety is a non-starter and India is way behind on safety track record. with complete lack of safety initiatives, it would take just another crash to set aviation back by 50 years.
    No one with basic common sense will invest in an Indian carrier when it is not just a level playing field, but it lacks transparency.

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  2. Capt.Ranganathan15 September, 2012

    And the pictures convey a lot too! One driving the sector to the ground and the other skywards!!

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  3. Moral of the story:
    Freebees and Free beers get Government nod. Efficiency loses out

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  4. “We welcome any policy initiated by the government.”

    Read that as "Government welcomes any policy initiated by us"

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  5. Not satisfied with the failure of 3 ventures the gent says:
    "allow new airlines to enter the fray and increase the competition, provide more choice and offer competitive fares"

    some people never learn!

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  6. We Indians must understand one thing , no foreigner comes to India to loose his capital;They are more calculative than Indians . They keep account of every paisa they invest & earn, they are foreign BANIAS, as soon as their purpose is served they pack up. What happened to Lufthansa Cargo India; As soon as their purpose was served they break off with Hinduja ; Hinduja was forced to close shop & retrench all employees; few youngsters {pilots & engineers }who were getting high salaries & were just married had to sucide.Those who were driving BMW could not efford a taxi.Its OK to say FDI is coming but I warn Goverment & those accepting FDI to be exceptionally careful before signing any FDI documents. They do not come to stay in India for ever. The day foreigners withdraw their investment Indian economy & markets will crash

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    Replies
    1. If you've ever done business in India you'd understand why foreigners ditch at the earliest opportunity. My experience has been a poor one. Does anyone ever do the job they are paid to without trying to "screw" people out of extra money for themselves? Promises are made, but deadlines are never met in my experience. As an Indian I am embarassed by this.

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  7. Mallya pays his CEO 4 crores a month but he cant pay his employeed their salary. He gets the government to change the policy to continue this cheating

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  8. But what they meant:

    Vijay Mallya - "ah, now to find a sucker... an Arab maybe????"

    Jet Airways - "ah, now to find a sucker... an Englishman maybe????"

    Neil Mills - exactly what he said

    Capt Gopinath - "whooppeee..."

    Ajit Singh - "Now go chew on that. This's it, i've neither the stamina nor the time for more...

    Emirates/Tim Clark - "let me google East India Company, how did they do it...???"

    Willie Walsh - "on second thoughts, this could be fertile ground after the Kangaroo kick"

    Etihad - "drool..."

    Lufthansa - "been there, done that and it sucks..."

    Singapore Airlines - the duck in the pack. Calm on the surface, but some very busy paddling going on underneath. But end of the day they will not touch any Indian carrier.





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  9. ha ha ! thanks clipper ghost, capt ranganathan and the kesrifly and all those for rolling on the floor to think a while comments!

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  10. thats very true, we see policies created for those who dont pay the salary for the staff. Will BA or Emirates take a dip into holy Indian Aviation and poilitcis, when the next Govt can change the policy to suit someone else. Or foreign airlines will invest to screw more of AIRINDIA rather then any oneelse. AI used to make crores of Rs by code sharing with few select and now with teh FDI inplace, that will become the rule of the likes of Emitrates and Ethihads. There will be another CAG report and investigation before the some people really pay the price. Lets see how it goes.

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