13 min clip on the problems facing Air India and SIA.
10 comments:
Anonymous
said...
SIA has too much air so it is showing generosity by transfering sufficient air to Air India free of charge after air is more or less free. But giving billions of dollars to Air India is a different matter. It is throwing Singapore Airline shareholders money as well as Singaporeans' money down the shithole. SIA should cut loss by disposing off its 25% shareholdings in Air India. Otherwise Air India will keep on bleeding SIA annually until it suffers financial anemia. This the conscientious opinion of most Singaporeans. SIA and the government should listen to Singaporeans to do the right thing.
This is not the time to be stubborn and sticking to an unsustainable position. Even a mountain of gold can be squandered away in the hands of a prodigal son.
Many global companies both from East and West, from, US, Europe, China and Japan had invested hundreds of billions of dollars in establishing huge industrial plants or industries in India. When these companies were successful and profitable the Indian government erected high walls to trip them over. Under questionable Indian government governance these companies were through legistration not allowed to take away their profits out of India but to deposit them in local Indian banks. Also these foreign companies were fined billlions of dollars through fake and false accusation of wrong doings or flouting Indian laws. In this manner the Indians hope to take over these successful companies or their subsidiaries for a song. Eventually these foreign companies had to cut losses by closing down their factories rather than to be continuously ripped off by the Indians.
Air India and its owner, Tata and SIA, are banking on its ability to build connections to Dubai to connect globally. That war against Pakistan and the closing of Pakistan's airspace to Indian airline is just a lame excuse but is nevertheless just making the problem for Air India worse going forward. Air India had already been losing money even before the war against Pakistan.
But that hype about profitability all depends on its ability to get new aircrafts on time. Boeing and Airbus have backlog stretching to 10 to 12 years, with more than 16,000 jets to deliver. Moreover, we now understand that even upgrading its run- down fleet inherited from the Indian Government is a problem without the supply chains to match. Depending on those old aircraft will drive away passengers, even its own locals.
Tata is gloating about profitability by 2027. Where are the retrofitting needed for the old aircraft that passengers are complaining about? If even changing the seats are problematic, what about maintenance issues? When are the new planes coming? 2 aircraft delivery a month or 24 a year is going to take 20 years to complete the delivery of the 470 aircrafts ordered. What about the needs of other Indian airlines? Which seems to be a hurdle trying to retire those old aircrafts without replacements.
Listening is never in the template of the government. Deflecting is the norm. Criticism is just noise, until it becomes more than noise. Then the crackdown comes.
Trump is now talking about allowing China to build cars in the USA. Hope China does not ever take up the toxic offer. Trump changes his mind like changing his diapers.
10 comments:
SIA has too much air so it is showing generosity by transfering sufficient air to Air India free of charge after air is more or less free. But giving billions of dollars to Air India is a different matter. It is throwing Singapore Airline shareholders money as well as Singaporeans' money down the shithole. SIA should cut loss by disposing off its 25% shareholdings in Air India. Otherwise Air India will keep on bleeding SIA annually until it suffers financial anemia. This the conscientious opinion of most Singaporeans. SIA and the government should listen to Singaporeans to do the right thing.
Muthu Kamaran
Welcome to the blog, Muthu Kamaran.
This is not the time to be stubborn and sticking to an unsustainable position. Even a mountain of gold can be squandered away in the hands of a prodigal son.
redbean
Many global companies both from East and West, from, US, Europe, China and Japan had invested hundreds of billions of dollars in establishing huge industrial plants or industries in India. When these companies were successful and profitable the Indian government erected high walls to trip them over. Under questionable Indian government governance these companies were through legistration not allowed to take away their profits out of India but to deposit them in local Indian banks. Also these foreign companies were fined billlions of dollars through fake and false accusation of wrong doings or flouting Indian laws. In this manner the Indians hope to take over these successful companies or their subsidiaries for a song. Eventually these foreign companies had to cut losses by closing down their factories rather than to be continuously ripped off by the Indians.
Lee Tai Chong
Singapore sorely miss the wisdom and guidance of LKY . . .
Air India and its owner, Tata and SIA, are banking on its ability to build connections to Dubai to connect globally. That war against Pakistan and the closing of Pakistan's airspace to Indian airline is just a lame excuse but is nevertheless just making the problem for Air India worse going forward. Air India had already been losing money even before the war against Pakistan.
But that hype about profitability all depends on its ability to get new aircrafts on time. Boeing and Airbus have backlog stretching to 10 to 12 years, with more than 16,000 jets to deliver. Moreover, we now understand that even upgrading its run- down fleet inherited from the Indian Government is a problem without the supply chains to match. Depending on those old aircraft will drive away passengers, even its own locals.
Tata is gloating about profitability by 2027. Where are the retrofitting needed for the old aircraft that passengers are complaining about? If even changing the seats are problematic, what about maintenance issues? When are the new planes coming? 2 aircraft delivery a month or 24 a year is going to take 20 years to complete the delivery of the 470 aircrafts ordered. What about the needs of other Indian airlines? Which seems to be a hurdle trying to retire those old aircrafts without replacements.
Listening is never in the template of the government. Deflecting is the norm. Criticism is just noise, until it becomes more than noise. Then the crackdown comes.
Trump is now talking about allowing China to build cars in the USA. Hope China does not ever take up the toxic offer. Trump changes his mind like changing his diapers.
His resurrection is long overdue.
Never mind, it is over the long term, even if it means waiting for the ripe fruits to fall.
Anyone uses the phrase long term investment to put his money, that is a dangerous warning sign. Run as far away as you can.
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