New Delhi: The civil aviation ministry is considering the “Satyam model”
for rescuing loss-making private airlines in future that are headed the
Kingfisher way. Officials will discuss this soon with civil aviation
minister Ashok Gajapathi and see if it is feasible. Sources said the
objective was to save jobs in financially-strapped airlines and ensure
that thousands of jobs are not lost, such as when Kingfisher Airlines
shut down operations.
But there will be no financial bailout of private carriers by the government.In the Satyam Computers case in 2009, when there was a real danger of it going bust, the then UPA-1 government stepped in and had asked government-picked nominees to take over its board. The eventual sale of the company to a new owner saved thousands of jobs.
But skeptics note Satyam was a case of alleged corporate fraud, and thus there was a difference between that and loss-making airlines. Incidentally, the DGCA is doing a financial audit of airlines, with carriers like SpiceJet under the scanner due to acute financial stress. “The focus is to save jobs.
Read news in full 01/08/14 Deccan Chronicle
But there will be no financial bailout of private carriers by the government.In the Satyam Computers case in 2009, when there was a real danger of it going bust, the then UPA-1 government stepped in and had asked government-picked nominees to take over its board. The eventual sale of the company to a new owner saved thousands of jobs.
But skeptics note Satyam was a case of alleged corporate fraud, and thus there was a difference between that and loss-making airlines. Incidentally, the DGCA is doing a financial audit of airlines, with carriers like SpiceJet under the scanner due to acute financial stress. “The focus is to save jobs.
Read news in full 01/08/14 Deccan Chronicle
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