New Delhi: The global economic crisis is causing serious trouble to different sectors, and a sector facing major problems is the aviation industry. There have been huge losses, worries over layoffs.
Aviation minister Praful Patel, the King of Good times, Vijay Mallya and Jet honcho Naresh Goyal will reveal future plans for the Indian skies. The last time the powerful trio was seen together was a bittersweet moment for the industry.
A period of high drama that unfolded in front the country and the key players of the turbulent aviation sector come together on The Hindustan Times CNN-IBN leadership Summit 2008.
"We have to cut costs, we've laid off staff, they've laid off staff, we'll do whatever it takes" says Vijay Mallya.
"I do not think that as the minister of civil aviation, I can take a decision and give any directive as to HR issues," says Civil Aviation Minister Praful Patel.
“I being the dad of the company was deeply disturbed of knowing of it and decided to step in," says Naresh Goyal.
The world’s biggest plane Airbus A380 landed in Hyderabad at India's first and most ambitious Commercial Aviation show last month. The same day, India's largest carrier Jet Airways cut 2000 jobs thus exposing a grim reality that Indian Aviation sector was on shaky ground.
There has been a very high taxation regime in our country both at the center level and state level which has resulted in a severe crisis," added Praful Patel.
Finally, the govt decided to scrap customs duties on jet fuel and oil companies agreed to review prices every fortnight. Measures which many say are little late in coming. Jet itself is staring at losses of over rupees 380 crore.
The Indian airline industry is set to lose over 5000 crores this financial year. Making it the second biggest loss making country next, only to the US. Therefore, the mergers and other tactics that followed was inevitable.
"It's not a marriage of convenience, this should have happened long ago, it's not economic but automatic, business costs in India are rising, this alliance will help in rationalising of routes," says Naresh Goyal
The summit focuses on the issues such as survival of aviation industry, government’s plan to solve the crisis and the concept of low cost travel.
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