Found this on the Communist Party of India Website:
"“Yet our rulers are giving priority to resolve the problems of the wealthy air passengers rather than to resolve the untold and unbearable miseries of the common lot. The rulers are much worried about the inconveniences faced by the air passengers at international airports like more waiting time for clearance, and luxury amenities. They claim that it is an important and main problem waiting to be solved urgently or otherwise the prestige of our nation goes down. With this plea they took up modernization of airports on war footing.”"
My response: The CPI (M) does not understand basics of economics and trade. While cargo carried by air in India weighs less than 1% of the total cargo exported, it accounts for 35% of the total value of exports. Better cargo handling facilities lead to enhanced levels of importation, especially of capital goods and high-value items. “Wealthy passengers” – I guess the guy who wrote on the CPI(M) website has never taken a Deccan airlines ( a low cost carrier). You often find yourself sitting next to poor Indian farmers which clearly transform economic equality from theory to application. The entry of the low cost airlines just assured the poor Indian passenger that the railways were charging too much for their shoddy service. The political party organized country wide protests recently to prevent modernization and privatization of the India’s airports.
The party is run by a bunch of jokers who use coalation politics to be in power. Clearly, they ruin the country’s business environment by encouraging corrupt labor union leaders organize protests against the government.
Read More:
http://www.cpiml.in/060325.htm
Wednesday, August 09, 2006
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3 comments:
The railways aren't charging too much. Get your info right.The railways are infact charging lower than they should be. Anyday, the railways are cheaper than the flights , however low the air prices are, cuz of the fixed costs. The only advantage for these LCC's are that they save time. But face it, air deccan gives VERY poor service in comparison to the railways. and the optehr airlines are LCC's even though they bear that tag!
Harini,
a) What I meant in my post was that there are plenty of tickets in Air Deccan that cost Rs.999, which is much lesser than an first class railway ticket.
b)Very true, service in Air Deccan is poor. However, my point in this post was not about the quality of service offered.
c) About fixed costs - Air fuel prices form 40 percent of the costs for an airline company. Quantity of airfuel consumed is "variable" depending on the distance travelled and other aspects like degree of congestion. Please get your basics of fixed and variable costs correct before you post a comment on my blog.
d) I track the Aerospace industry for a living.
Couple of points Schumit,
1. You often find yourself sitting next to poor Indian farmers which clearly transform economic equality from theory to application.
Are you suggesting you can quantify purchasing power of a person from his ppearance? That is not a charitable thing to say. Neither is it scientific.
2. I totally agree with you that the CPI(M) is run by jokers. While I agree with your end, I do not quite see the logic in your means. You seem to argue that the purpose of allowing privatization is to increase the quality of life of the individual. While I agree that competition does improve the consummer's quality of life, that is not the point here. The point is, the Government has business to put restrictions on areas like these. It is a violation of our freedom if we have to look for approval towards the government for every activity that we can come up with.
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