Vijay Mallya’s strike that never took off

As mentioned in my earlier blog, the proposed threat of a strike by the airlines was a bad idea from every point of view. I could not see any logic behind the strike. Airlines do not have great negotiating power. They didn’t hold any trump cards. I agree that they are in a difficult situation and resorted to this desperate act.

As mentioned earlier, airlines will have to wait out the global slowdown while at the same time continue to convince the government to take certain action on ATF prices and landing cost. With a freindly minister like Praful Patel, they have a chance of achieving their goal.

In addition, airlines need to raise money by selling their stake. Of course, the valuations they will get will be low but then they have to learn to take the heat as they are the once who decided to enter the kitchen.

Anyway, I am happy that good sense prevailed and the airlines have called off their strike.

avinash Narula

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