IT IS TIME TO CUT LOSSES

Finding a Bakra  ?  Possible  ?

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Over the past 3 weeks , there is a lot of “ noise “ about selling off Air India , which has been making huge losses for years and has a current debt of  Rs 60,000 crore

Noise makers include , Arvind Panagariha , Amitabh Kant , Arun Jaitley and Ashok Gajapathy Raju ( Civil Aviation Minister ),who recently said ( Times of India / 01 June ) :

“ There are hardly any bakras around, so to get one is difficult and businessmen are businessmen

There are limitations . One thing is for sure, the taxpayer’s money cannot be committed for eternity

So, that is one problem . Failures are there on the financial front , so there are problems and these will be attended to  “

Arvind Panagariah has suggested that the government write off that Rs 60,000 cr debt , ( in order to “ attract a bakra “ ? ). Better than throwing away GOOD money after BAD !

If the government is also ready to write off that other “ liability “ called “ Manpower “ , ( approx. 21,000 people ) , there is a possibility that a “ bakra “, with an ability to turn Air India profitable , can be found.

Let there be no doubt . No one , repeat NO ONE , will want to even touch Air India , if the deal includes taking over that “ Manpower “ !

That bakra could be , RYANAIR of Europe ( founded in 1985 and profitable throughout ) – perhaps the only WHITE KNIGHT capable of rescuing !

Those having the responsibility to find that “ bakra “ might want to look at the following statistics about RYANAIR :

·         Chairman …..Michael O’leary

( who , once said , “ If you have complaints about RyanAir , don’t fly with us “ . For a long time , RyanAir refused to have a Customer Complaint department )

·         Airfare

Average Fare per Passenger Flown………….. Euro  33 ( Rs 2,600 )

Dublin ( Ireland ) to ANYWHERE……………… Euro  150 ( Rs 11,000 )

·         No of Employees……………………………………….. 12,000

·         No of Employees / Aircraft………………………..        30 ( 12,000 for 400 Aircrafts )

  { Air India’s No of Employees / Aircraft ……………. 178 ( 21,000 for 118 Aircrafts )

·         Employee Growth ( June 15 – June 17 )…..  12 %

·         No of Passengers flown (2016 -17 )………….  130 Million

·         Traffic Target ( FY 2024 )…………………………..  200 Million

·         No of Countries served……………………………….    34

·         No of Cities served……………………………………….  200

·         No of bases…………………………………………………..    86

·         No of daily flights………………………………………….  1800

·         No of Aircrafts……………………………………………….    400 ( 737 )

·         Aircrafts on Order………………………………………..   300  ( 737  )

·         On time Performance……………………………………    FIRST  in Europe

·         Profit ( expected for 2016-17 )……………………    Euro  1300 Million

Dear  Shri  Raju :

RyanAir’s Michael Leary is an Irishman, with its headquarter in Dublin ( Ireland )

Ireland’s next “ Prime Minister – to be “ is Mr Varadkar ( whose father hails from Varad town of Maharashtra )

How about sending a “ feeler “ to Michael through Shri Devendra Fadnavisji ?

05  June  2017

www.hemenparekh.in / blogs