Saturday, October 18, 2008

Who cares about Aviation Sector

The ground work is being carried out for last six months.In leading Newspapers, there is an article almost every week about huge losses being suffered by Aviation sector in India.Initially,I did not understand the reason for this slow but consistent lobbying by the Airlines Industry.And now there is a drama about the lay-off(just 1900 employees) by Jet Airlines.Its a matter of consideration that in last 2 months there have been a lay-off of at least 20,000 engineers by various IT Companies like Satyam ,IBM etc.But they did not make any news.Lets consider various aspects of this Aviation Industry.
1. Firstly,this is just one of the Industries with no big exceptional significance in the economic growth if the country.When there are facilities like Video Conferencing available there is no need the travel across the globe for discussions,meetings etc.Business travellers should rather make use of new Information Technology facilities and also save some fuel.

2. People like Vijay Mallya and Naresh Goyal entered the Aviation Industry to make money and no government can ensure that private businessmen should not suffer losses.
3. The Govt needs money in form of various taxes to run its public schemes,if taxes are reduced to favor businessmen then who will fund these welfare schemes.

4. Mr Praful Patel cannot use the hard earned Taxpayers money to bail out his friends businesses.

5. Look at the general profile of the employees of Aviation sector.They are cabin crew,Air Hostesses and Pilots.Most of these jobs do not require any basic educational qualifications.They are recruited on the basis of their looks and are paid much higher than other sectors.The Pilots belong to the breed of Rich and Greedy who want to mint easy money.The parents who have Rs 20 Lacs to fund Pilot Training Fee are enrolling their wards in Flying schools.If you are 18 yrs old and 10+2( 55% marks) and have 20 Lacs risk taking capacity ...you are welcome to earn 2 lac/month.This is 10 time the salary of a Resident doctor at AIIMS.There is no reason that pilots are being paid 2-4 lacs per month with other perks.There is no reason to pay Rs. 40,000 to an Air hostess just for wearing short skirts in the planes.They should instead normalize their salaries as per other industries.

Media is also playing a role in escalating things beyond their natural place.This is nothing new.If there are special concession given to this sector,it will set a very bad precedence.There will be hue and cry from every private sector.Will recession just round the corner,private players are bound to face the heat.The Govt should abstain from any kind of bail out.



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