Pest Analysis

1684 WordsNov 14, 20087 Pages
NEW DELHI: Exactly a week after forging a surprise alliance, Jet Airways and Kingfisher chiefs Naresh Goyal and Vijay Mallya were courting the corridors of power in Delhi. While Mallya, a former MP, went to Parliament where he rubbed shoulders with the high and mighty, Goyal called on finance minister P Chidambaram to seek tax relief for airlines and also met his reinstated employees here. "It was almost like a newly-wed couple going around to seek blessings from those who matter," an MP remarked. Emerging from Parliament, Mallya indicated that more job cuts and layoffs could take place in the sector if its fortunes did not change fast enough. "If the slump in the market continues, then the number of flights will have to go down. When planes are grounded it has effects," Mallya said, adding: "Cost of fuel and sales tax rates on it by states are very high. When we increase fares, lesser number of people fly." Not wanting to ruffle any feathers, Mallya added that the government's "response has been a lot more urgent and a lot more decisive. The government has other issues to deal with in the national interest and we hope our turn will come sooner than later." While Mallya was at Parliament, Goyal is learnt to have met finance minister P Chidambaram at the latter's North Block office. He took up the issue of base price of jet fuel and high taxes on it. The combined impact of these two factors have made India one of the most expensive places in the world to buy ATF. Coupled with fuel prices, airlines' overcapacity led to losses to the tune of Rs 4,000 crore last fiscal and the figure could double this time. According to sources, since several key politicians came rushing in to take credit for Jet reinstating all its 1,900 sacked employees, Goyal is now looking for some early relief. The Cabinet Secretary-headed panel appointed by the PM to look

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