Kingfisher Airlines is in the red, literally, and is reportedly seeking a bail-out from the Indian Government.
If that is true, then, a few of my thoughts on this issue ….
Taxpayers’ money should not be used to bail out private enterprise. If Mallya wants help, he should declare Kingfisher Airlines to be a SICK UNIT and go to B.I.F.R.
It is the Government’s duty to ensure a level playing field, and it has done so, in the airlines sector. Air India is facing a severe financial crunch and the Government has not extended any helping hand thereto. Indian industry seeks greater deregulation and less government control and less interference, and at the first sign of problems, runs to it for help.
Mallya’s Kingfisher Airlines can borrow from Mallya’s United Breweries, or his IPL team Royal Challengers, Bangalore or he can infuse fresh capital from his own funds or he can partly disinvest his stake, or he can seek merger with other Indian Airlines.
Under no circumstances, should the Indian Government bail out Kingfisher Airlines, with Indian Taxpayers’ money.
IF THE INDIAN GOVERNMENT IS FLUSH WITH FUNDS, THEN IT SHOULD REDUCE TAXES AND EXCISE ON PETROL.