'Kingfisher' in Trouble

[harpoon]

AIr India is a GoI subsidiary.

A taxpayer is a stakeholder in AI by dint of his being a citizen of India.

Although, I do believe that GoI should divest its stake in AI asap.


However, the Indian exchequer DOES earn a share in AI's profits (whenever it makes them), in a similar vein, the Indian exchequer has a share in AI's losses.

Now let's come to KFA.

KFA is a private corporation.

A common taxpayer is not a stakeholder in KFA.

The Indian exchequer does not earn any share in KFA's profits, then why should the Indian exchequer be a party to KFA's losses?

Does Vijay Mallya pay me anything when his airline makes a profit?

NO!

Then why should I pay him when his airline is making loss?

I'm not advocating a no strings attached bailout. In return for bailout Govt will get shares in the company.

 

[CaptainJackSparrow]

Most of the resentment against Vijay Mallya it seems is bcs he is a showoff...but its his money. Why so jealous?

As for poor's money GoI just spent 20,000 crores to bailout Air India.

Tell me something,

Will you bailout your local kirana shop if he starts making losses?

NO!

Why?

Because you are not a party to his profits.

Hence, you have no obligation moral or legal, to bail out his loss making business.

Let his business perish!

That is the core tenet of a capitalist economy.

It's not called a 'free enterprise' for nothing.

Think about it.

 

[harpoon]

only kerala language has such multi zero numbers i read somewhere they have more then zillion too it was push and forget dear any problem ?

What are you trying to say here?

---------- Post added at 12:58 AM ---------- Previous post was at 12:57 AM ----------

Tell me something,

Will you bailout your local kirana shop if he starts making losses?

NO!

Why?

Because you are not a party to his profits.

Hence, you have no obligation moral or legal, to bail out his loss making business.

Let his business perish!

That is the core tenet of a capitalist economy.

It's not called a 'free enterprise' for nothing.

Think about it.

Read post# 46

 

[mirage 5000]

Most of the resentment against Vijay Mallya it seems is bcs he is a showoff...but its his money. Why so jealous?

As for poor's money GoI just spent 20,000 crores to bailout Air India.

no body is jealous harpoon jee why should i ? we are debating here without hate or love .gov own AI so its public property .you know after increase of oil price even saudi air lines lose? another saudi based SAMA air windrow after lose250mn$ ? airline is not profit making business from starting . its not that much high as we seen .its gov job to help people to air transport do thats why IA PIA saudi air lines bailed out .

 

[livingdead]

No need to bail out. It is not a bank.
Some airline will survive and some will die. Nothing special about kingfisher.

 

[CaptainJackSparrow]

I'm not advocating a no strings attached bailout. In return for bailout Govt will get shares in the company.

That is a loss making proposition.

How on earth will a govt. which cannot even handle AI properly, will handle another airline?

You are suggenting that the GoI invest in a loss-making activity.

In fact, the GoI should divest its stake in AI also.

Let there be free competition.

Let new and better airlines flourish and let older monoliths perish.

And BTW, what you're suggesting is called a 'buyout' and not a 'bailout'.

---------- Post added at 01:02 AM ---------- Previous post was at 12:59 AM ----------

No need to bail out. It is not a bank.
Some airline will survive and some will die. Nothing special about kingfisher.

Ideally, even banks should not be bailed out.

Ideally, in a capitalist economy, no entity whatsoever should be bailed out.

 

[harpoon]

That is a loss making proposition.

How on earth will a govt. which cannot even handle AI properly, will handle another airline?

You are suggenting that the GoI invest in a loss-making activity.

In fact, the GoI should divest its stake in AI also.

Let there be free competition.

Let new and better airlines flourish and let older monoliths perish.

And BTW, what you're suggesting is called a 'buyout' and not a 'bailout'.

Here I agree with you 100%. If there is no bailout for KFA, there should be neither for Air India.

---------- Post added at 01:04 AM ---------- Previous post was at 01:02 AM ----------

no body is jealous harpoon jee why should i ? we are debating here without hate or love .gov own AI so its public property .you know after increase of oil price even saudi air lines lose? another saudi based SAMA air windrow after lose250mn$ ? airline is not profit making business from starting . its not that much high as we seen .its gov job to help people to air transport do thats why IA PIA saudi air lines bailed out .

20,000 crores lost into the abyss called Air India..Sorry cut me out of the profit when and if AI makes some.

 

[mirage 5000]

32 airlines of india shut down there bussniess or bit the dust before rise . its nothing new Defunct airlines in india look here

List of airlines of India - Wikipedia, the free encyclopedia

 

[CaptainJackSparrow]

Here I agree with you 100%. If there is no bailout for KFA, there should be neither for Air India.

You are getting me wrong.

You are equating KFA with AI.

As long as AI remains a GoI owned, entity, it may be bailed out.

In fact, technically, AI cannot be 'bailed out'. The word 'bail out' cannot be used for AI.

Bail out is used for entitites in which the investor has got no share.

GoI has a share in AI hence it can put more money in AI but that will not be called a 'bail out' per se.

GoI has no share in KFA hence KFA can be bailed out but it should not be. Economics advises us against bail outs.

---------- Post added at 01:08 AM ---------- Previous post was at 01:05 AM ----------

...and I just became a senior member.

 

[mirage 5000]

---------- Post added at 01:08 AM ---------- Previous post was at 01:05 AM ----------

[/COLOR]...and I just became a senior member.

not yet wait more 10 minutes

 

[livingdead]

Ideally, even banks should not be bailed out.

Ideally, in a capitalist economy, no entity whatsoever should be bailed out.

Well some sectors need to be rescued because they are vital part of the economy.
Although it is a capitalistic entity, sometimes it has to be rescued so that others dont fail.

Also I did not mean all banks should be rescued, those which risk the whole economy should be rescued.

 

[harpoon]

As long as AI remains a GoI owned, entity, it may be bailed out.

Thats what I don't like. Govt should disinvest and quit and keep the space open for private players. As you said earlier its a free market economy .

 

[CaptainJackSparrow]

Well some sectors need to be rescued because they are vital part of the economy.
Although it is a capitalistic entity, sometimes it has to be rescued so that others dont fail.

Also I did not mean all banks should be rescued, those which risk the whole economy should be rescued.

Banks fail when they start incurring costs foolishly.

Foolish entities should have no place in the economy and should be reined in by means of effective regulation.

---------- Post added at 01:14 AM ---------- Previous post was at 01:13 AM ----------

Thats what I don't like. Govt should disinvest and quit and keep the space open for private players. As you said earlier its a free market economy .

But the Govt. is not doing it.

Hence we have to grin and bear the aunties of AI.

 

[harpoon]

Banks fail when they start incurring costs foolishly.

Foolish entities should have no place in the economy and should be reined in by means of effective regulation.

Then how would you explain the American Govt bailout of many banks in the aftermath of financial crises.They also bailed out GM.

 

[CaptainJackSparrow]

Then how would you explain the American Govt bailout of many banks in the aftermath of financial crises.They also bailed out GM.

The Americans effectively failed themselves.

They failed to regulate the activities of the banks when they were lending credit to every tom, dick and harry.

That's where the American govt. should have stepped in and nipped it in the bud.

The American govt. didn't and America and the world paid a heavy price for that.

Indian govt. would better take a cue from the American experience and start monitoring and regulating the banks' activities so that any such problem can be precluded in its infancy itself.