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Stupid Investment Advice- Keep Giving Billions in Dole to subsidize the inefficient loss making Air India

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Air India is probably the worst run government company in India with its bloated workforce,inefficient management and massive losses.While the airline industry is not exactly in the pink of shape given the high oil costs and competition,Air India is the worst airline in India by a wide margin.Government officials use it as their pet cash cow giving themselves thousands of air tickets.The number of employees per plane is quite scandalous and the service quality amongst the worst.

Some of the airplanes make a rickety bus in Indian cities seem better while the service staff can be highly rude.Note most of these jobs are secure for life giving very little incentive for the Air Indian employees to improve their performance.As a result you can expect the worst.While a number of PSUs in India have improved tremendously after public listing and liberalization,Air India has seemingly got worse.The company makes massive losses and has to be bailed out by the government.There is total lack of accountability in Air India and little impetus for reform.The government ministers want to keep the Air India to keep milking money.A new panel has now suggest that the government of India keep giving regular billions to keep the airline afloat as it flies to unprofitable routes.Another stupid reasoning because these routes can be easily be auctioned out to the lowest cost private airline.Why the government needs a state owned airline is beyond me as it can easily commandeer the aircraft of private airlines in times of war etc. like the US does.But then how will corrupt ministers make money.

Govt must give Air India billions occasionally: Panel

The government should occasionally grant thousands of crores of rupees to Air India for its functioning as withdrawal of flights from profitable routes and unresolved issues relating to its merger do not augur well for the carrier, a parliamentary committee has said. The Standing Committee on Transport, Tourism and Culture “recommends that the government should differentiate between private airlines and Air India as a public sector undertaking supported by the government occasionally by granting thousands of crores of rupees for its functioning”.

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Abhishek Shah

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