air india regulation
Spreading the malaise
The ripple effect of Air India’s defaults in clearing dues of airports, oil companies and other suppliers would have not taken place had the Government put in place an independent regulator
by Naresh Minocha
ITH the governance of the country’s aviation sector not even being skeletal, the proverbial bad fish spoiling the whole pond is coming into full play. Today, the Government is spreading the financial burden of managing sick Air India Limited on other entities in the aviation sector. The ripple-effect of bad governance of a hopeless public sector enterprise now threatens to even dent the Income Tax Department’s receipts from airport and the aviation sector.
Air India and private loss-incurring airlines have already hurt the financial health of public sector oil companies, such as Indian Oil Corporation, through delayed payment of fuel bills. The oil companies, in turn, are facing bills, though modest, against fuel handling facilities provided by airports.... READMORE