Jet Airways
Look who’s crying again?
In my recent post I had stated that the joint action of the airlines in India to increase their fares together was prima facie illegal and unfair practice under MRTP. I was happy to read that MRTP is taking immediate action to investigate the matter. Of course, Aviation Minister Praful Patel also issued a warning but we all know what value that has considering his soft corner for his freind Vijay Mallya. I am also happy to hear that Jet has decided to wear the proverbial “pants” and reversed its decision to increase prices and disaasociate itself from the illegal act.
It seems all the airlines are learining Mallyanomics
First there was collusion between Jet and Kingfisher. They wanted to join together and take the travellers for a ride. Now it seems that all the airlines have joined together to raise prices together. The surprising part is that the budget airlines are also joining hands with full service airlines. The price increase comes just a few days after they had cut prices.
Vijay Mallya – King of Unaffordable Goodtimes
Within a week of Jet and Kingfisher airline illegal alliance and firing drama, Jet and Kingfisher airlines get government’s help in geting better credit terms for purchase of fuel, more time to pay for their current outstanding with respect to fuel outstanding and also in the ATF prices which will now be revised every fortnight. Now let us look at what is wrong with this picture.
Jet-Kingfisher fiasco: What they said?
During the recent Jet-Kingfisher drama involving the illegal alliance, sacking of 1900 employees and then hiring them back, big time industrialists and ministers made statements. These statements were illogical and contradictory. Since our media is afraid to point out the discrepancies because of their vested interest, I would like point out the inconsistencies as I don’t want them to think that we are stupid. Lets analyze what each of them said.
Is Praful Patel working for Jet and Kingfisher?
Actions of our aviation minister suggests that he is working for Jet and Kingfisher. Lets look at the evidence.
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.
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