The economic reality of the
current financial crisis is starting to get personal for working Indians. As
little as three months ago working Indians were under the impression that their
jobs were safe and that they were somehow insulated from the crisis. There was
a general perception that whatever was happening was happening in the US and
the UK and the only effect of the crisis on India was the drastic fall of its
benchmark stock market indices. That was until of course they too started to lose
their jobs.
Words like ‘layoffs’, ‘retrenchment’
and ‘cost cutting measures’ have started doing the rounds in Indian firms. As
we all know they’re technical terms to indicate that many personnel will soon
be out of a job.
Under normal circumstances ,it
would have been a complete shocker but these are abnormal times and one where
companies across the world are simply hoping to tide over. By the look of
things we’re in for a long haul of uncertainty and lesser growth. In India the
effects of these times have hit the Aviation
Industry the hardest. Not only are companies under threat from volatile
fuel prices but also a domestic consumer who is simply unwilling to pay more
for an airline ticket. So when Naresh Goyal of Jet Airways and Vijay Mallya of Kingfisher Airlines decided to come together, airline pundits were
hardly surprised. Rumors that the two biggest private airline companies in India
would come together had been going around for quite some time.
The rise in fuel prices and the
slow onset of recession has sent the Airline Industry into shock not only in India
but worldwide. A few weeks ago a high ranking executive of Emirates, the Dubai based
airline said that his own airline faces the possibility of a drop in profits.
This is an important statement because Emirates are the only airline Worldwide
to have been the least affected by rising fuel prices . In addition they have
managed to make money while many other airlines have gone totally bust.
While the markets have fallen
drastically over the past two days, one stock that did well particularly in the
last twenty four hours is the stock of Spicejet Airlines. However little has to
do with its economic data and profits rather than the speculation over its
future.
Having started flights to the United States last year, Jet Airways have all the potential to become the world's best airline. Jet Airways at this moment of time has 90 planes -- Boeing 737s & 777s and Airbuses. In addition, the carrier has ordered 30 more planes for $2.5 billion.
It has come into the notice of The India Street that Vijay Mallya led Kingfisher Radio is now in the possession of a 45.97 per cent stake in aircraft and air charter operator Deccan Aviation, post the open offer. It is worth mentioning in this regard that Mallya got 27.12 million shares in the open offer made to the shareholders of Deccan Aviation.
The economic reality of the
current financial crisis is starting to get personal for working Indians. As
little as three months ago working Indians were under the impression that their
jobs were safe and that they were somehow insulated from the crisis. There was
a general perception that whatever was happening was happening in the US and
the UK and the only effect of the crisis on India was the drastic fall of its
benchmark stock market indices. That was until of course they too started to lose
their jobs.
Under normal circumstances ,it
would have been a complete shocker but these are abnormal times and one where
companies across the world are simply hoping to tide over. By the look of
things we’re in for a long haul of uncertainty and lesser growth. In India the
effects of these times have hit the Aviation
Industry the hardest. Not only are companies under threat from volatile
fuel prices but also a domestic consumer who is simply unwilling to pay more
for an airline ticket. So when Naresh Goyal of Jet Airways and Vijay Mallya of Kingfisher Airlines decided to come together, airline pundits were
hardly surprised. Rumors that the two biggest private airline companies in India
would come together had been going around for quite some time. 
The rise in fuel prices and the
slow onset of recession has sent the Airline Industry into shock not only in India
but worldwide. A few weeks ago a high ranking executive of Emirates, the Dubai based
airline said that his own airline faces the possibility of a drop in profits.
This is an important statement because Emirates are the only airline Worldwide
to have been the least affected by rising fuel prices . In addition they have
managed to make money while many other airlines have gone totally bust. 
While the markets have fallen
drastically over the past two days, one stock that did well particularly in the
last twenty four hours is the stock of Spicejet Airlines. However little has to
do with its economic data and profits rather than the speculation over its
future. 
