Why Jet Airways Crisis Seems Like a Case of Crony Capitalism
Video Editor: Purnendu Pritam
Amid the din of elections, the turmoil at Jet Airways and fallout after the suspension of services has not managed to attract a lot of attention. During this, two major developments have taken place which make this whole crisis seem like a case of crony capitalism. Senior BJP leader Subramanian Swamy wrote a letter to the Union Civil Minister Suresh Prabhu, and, then tweeted to Prime Minister Narendra Modi that two BJP leaders want to hand over Jet's business to SpiceJet.
Jet in Trouble, But No Action By SBI
Another thing to observe is Indigo and Tata Vistara's letter to the government. They have alleged that there's no level-playing field in the government's allotment of Jet Airways slots (the slots that have come up for grabs after Jet's supension). It is also in violation of the 2003 guidelines, they have written.
When we talk about rules and regulations of businesses and policies in the country, let's see what happened to those in the Jet saga. Let us also note who are the main players in this episode and what happened to them:
Naresh Goyal's story is over. Many arguments are being given for this downfall, such as airline business has become expensive, rising fuel prices, that he had taken many loans and was running a pricey operation. Now, we can deduce that basically, he wasn't trying to save his business, he was only trying to save himself and leave.
When trouble increased, the SBI said they will get new bidders. They said they will get investors and if needed, will also pump in Rs 1,000-1,500 crore, but only if the airline gives some security. How could a falling airline have provided security?
(This article was originally published on The Quint Hindi.)
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