A lesson for Vijay Mallaya in capitalism

Vijay Mallaya, Chairman of Kingfisher Airline and UB group made a statement in relation to the proposed strike by the airlines on 18/8/2009 made a statement “We want the government to understand what happens when private carriers don’t exist.” I think Vijay Mallaya is losing it or is drunk on the good beer that his companies produce or he seriously doesn’t understand the meaning of capitalism that I have heard him talk about on TV.

Call drops are not acceptable

In my book titled Customer Icebergs, I have discussed the subject of call drops and have stated that mobile companies actually benefit with call drops which is what Hindustan Times reported today. Mobile companies have no incentive to reduce call drops because of the following reasons:

Kingfisher Jet alliance – Prima facie a cartel

Thank God, some of the media people have woken up and are calling the Kingfisher Jet alliance a cartel. ET has stated in its editorial that the alliance “may be” anti-consumer. Why may be? Prima Facie, it is. Any agreement, whatever the terms, between the two will be anti-competitive and anti-consumer. This is against the MRTP Act. Whenever, two major competitors sit down on a table to work together to save money, that is, make more profits, you don’t have to be a rocket scientist to figure out that it is going to be against the law and the consumer is going to get screwed (to put it mildly).

Jet and Kingfisher form a cartel but call it pathbreaking alliance

Jet and Kingfisher with a combined market share of nearly 60% have announced operational alliance to save costs. Their argument is that they are losing Rs. 20 crores everyday.