Girls Grounded by Spicejet in Delhi Floored by Railways

[mkrishna100]

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Very gald to note that the timely intervention by Minister Nirmala Seetharaman and the prompt response by the Indian Railways provided a great relief to these girls

Girls Grounded by Spicejet in Delhi Floored by Railways

Girls Grounded by Spicejet in Delhi Floored by Railways - The New Indian Express

 

[renuka]

Werent there any guys that got grounded too? What happened to the guys?

 

[krish44]

excellant initiative by the minister.

why not special counter of railways at airports with facilities for tickets for stranded passengers of spicejet.

other airlines should accept endorsed tickets of spicejet.

genuine passengers should not be penalised for irresponsible actions of spicejet

sun group is cash rich. I see no reason they should not be made liable for damages and hardship caused by

irresponsible spicejet group.

Govt is soft on spicejet. public is held to ransom

similar was the action of mallyas kingfisher. mallya is getting away scotfree.

these fellows should face action by supreme court like sahara s subroto who has been jailed for not returning

depositers money. why not?

 

[vgane]

Very good initiative by the Minister..Hats off to the Professor Usha Ravi who was incharge of the team too for getting in touch with the Minister..Many a time we struggle to find the right source for help!

 

[Jaykay767]

Why should sun group pay a dime??? oh, coz they are southIndian company, they should pay. Why not the North Indian founder member whopocketed the money from Sun group ?, why should he not step in & pay, he isvery cash rich ???

Why is the Center soft on North Indians?. & onlytough on South Indian companies. King Fisher/Mallya Group collapse is an openvendetta by the center by both the national parties.

When Air Asia was formed, it was more or less a SouthIndian company with Tata Chairman more as a symbol than any ownership. So promptlythe Govt asked Tata to form the Tata-Singapore Airline Company & is doingeverything to prop it up, while trying to screw the south Indian companies& reduce their dominance…

And on top of this vendetta politics, public is held atransom & govt is soft on spicejet& should punish them???. For what? For the crime of starting a company inthis country & that too south Indians holding stake in them ????

Wah re wah !!!! – lets see how long this “natak bazzi”continues !!

 

[Jaykay767]

To clarify, my comment is not against north Indians as a group,it is about the central govt & the vendetta against south based companieslike King Fisher & sun group supported Spicejet. At the time whenKingfisher was struggling, the civil aviation minister openly told that Banksshould be careful not to lend to KFA & build NPAs, while he went on giving statusupdate on the Jet-Etihad deal assuring all & sundry that the deal is allbut done showing his open bias. Jet has the highest debt among all airlinecompanies & these are all NPAs.

Also, I don’t see any reason why a private company shouldbe penalized for failing to be profitable in a sector where the rules &regulations are a mess. Even if the rules were favorable, many companies fail,so there is nothing called taking public for a ride. In the case of Sahara, thedepositor money was looted by the company on false promise of doubling them, onthe other hand, the airline business is a legitimate business.

For eg, the new govt at the center is on a vendetta withthe TMC which is not right, but that does not mean that North Indians &Bengalis have a problem. However it is an issue that needs to be counteredpolitically by voicing opinion against such bias.

 

[krish44]

jaykayji

one does not justify wrong duing by one airline saying it is bias.

govt should not feel guilty about its own rules and guidelines put in place to make airtravel safe

and secure for all.airlines accepted these rules and began operations in india. if they make losses,

govt and public cannot be made liable and made to suffer. what is the fault of the public? buying

cheap air tickets?even the best companies can be made sick by bad management and poor work

practices.nothing is going to happen to spicejet management . only public sector banks who lent

them money will have more NPAs

 

[Jaykay767]

Krish – I am not justifying one with another only showing the trend/bias. Many companies fail due to bad/incompetent management, only some go due to being unlucky, wrong place at the wrong time etc… – not just in airline business but across all sectors. so what is your proposal here ?.Do we penalize all these companies due to Bad management?. Unless the spicejet team deliberately took loans from the Banks, embezzled them to their private coffers, there is no case against them for just being incompetent !! Lets assume for argument sake, that spicejet is responsible for embezzlement, you are saying, lets hold sun group responsible, but why not the promoters & all the other major stakeholders??Most of the loans taken by Spicejet are prior to sun group acquisition of the stake, so they are not responsible for the huge debt they are in now. As far as regulations are concerned, the issue is more on the overall regulations like huge oil tariffs, taxes, etc.. not related to on safety!

 

[Jaykay767]

Krish –

I am not justifying one with another only showing thetrend/bias. Many companies fail due to bad/incompetent management, only some godue to being unlucky, wrong place at the wrong time etc… – not just in airline business but across allsectors. so what is your proposal here ?.

Do we penalize all these companies due to Badmanagement?. Unless the spicejet team deliberately took loans from the Banks,embezzled them to their private coffers, there is no case against them for justbeing incompetent !!

Lets assume for argument sake, that spicejet isresponsible for embezzlement, you are saying, lets hold sun group responsible,but why not the promoters & all the other major stakeholders??

Most of the loans taken by Spicejet are prior to sungroup acquisition of the stake, so they are not responsible for the huge debtthey are in now.

As far as regulations are concerned, the issue is more onthe overall regulations like huge oil tariffs, taxes, etc.. not related to onsafety!

 

[auh]

Jaykay767,

There are various factors for a business to collapse - not just embezzlement, though that too can be one among many.

The viability of a business under distress can be identified, along with a combination of other variables, via - cash stress, top management changes, sudden upheavals of business units, operating units being hived off, distress sales, unsound business practices etc.

Only a detailed study of the micro & macro variables in Spicejet would give a clearer picture. Together with the pressure of banks, and unless the owners pump money, the business cannot operate on a continued cash deficit. The Ministry has also acknowledged that collapse of Spicejet would hit the industry, and it is in a quandry now. If business is profitable, Kalanidhi Maran could very well pump in money from his other profitable ventures since he owns majority of the shares?

Do you have any evidence that the govt. has an agenda against companies that are based from the south?

 

[sarang]

The govt has advised banks to advance about 200 crores to take care of fuel and operating expenses. Spicejet has about 2000 crore liabilities, which, the pundits say, can be easily cleared by marans from their internal resources. They are trying to sell it.

Jaykay767,

There are various factors for a business to collapse - not just embezzlement, though that too can be one among many.

The viability of a business under distress can be identified, along with a combination of other variables, via - cash stress, top management changes, sudden upheavals of business units, operating units being hived off, distress sales, unsound business practices etc.

Only a detailed study of the micro & macro variables in Spicejet would give a clearer picture. Together with the pressure of banks, and unless the owners pump money, the business cannot operate on a continued cash deficit. The Ministry has also acknowledged that collapse of Spicejet would hit the industry, and it is in a quandry now. If business is profitable, Kalanidhi Maran could very well pump in money from his other profitable ventures since he owns majority of the shares?

Do you have any evidence that the govt. has an agenda against companies that are based from the south?

 

[Jaykay767]

Auh, Sarang – How can the govt or anyone dictate marans or for that any shareholder to pump in more money in a failed venture??? Will you put in more of your money into a failed company due to something called public interest?

And why are you asking only sun group to put in money?. Why not the promoter who is sitting on personal wealth of 1000s of crores ? why not the blackstone group, they are sitting on billions of dollars & many other mutual funds which have shared in spicejet ???

The very fact that Govt or the public wants only Sun group to continue to put more money in a failed venture shows the bias.

Why will/should anyone be forced to put more money into a failed venture???

Auh - when Mallya tried to bring a foreign investor to bail out KFA, the civil aviation minister deliberately did not bring in the FDI in Aviation for over a year despite many many calls from Mallya/industry followers. After KFA defaulted on loans & DGCA barred them from flying, miraculously in a few days, the FDI in aviation was passed & Jet-Etihad deal was finalized. So the Govt wanted to clip the wings of Mallya & similarly they want to do for Sun group. How long does it take to draft & pass a simple FDI in Aviation bill – years ???

 

[sarang]

Marans have benefited a lot from telecom policy, cable TV policy and are under cloud now. They do not deserve any sympathy, can face the music and repay to society what was looted in a different period and by different means.

 

[auh]

Jaykay767,

The simple reason for Sun Group to invest in Spicejet is that it owns it now. It does not make business sense and neither is it logical to expect the promoter, who is not the owner currently, to invest in a failing operation.

Every company has an element of public interest in several ways - they provide employment, and are a part of the economic cycle. Hence I said that the Govt would be concerned about any major enterprise that is about to fail.

If Sun Group would not want to invest in their own business, inspite of sufficient cash flows from their other diversified business portfolio, why should the Govt do it, albeit there is an element of public interest?

Auh - when Mallya tried to bring a foreign investor to bail out KFA, the civil aviation minister deliberately did not bring in the FDI in Aviation for over a year despite many many calls from Mallya/industry followers. After KFA defaulted on loans & DGCA barred them from flying, miraculously in a few days, the FDI in aviation was passed & Jet-Etihad deal was finalized. So the Govt wanted to clip the wings of Mallya & similarly they want to do for Sun group. How long does it take to draft & pass a simple FDI in Aviation bill – years ???

I agree that the fdi may have come a bit too late for KF, but even if it had come in earlier, Mallya (promoter and owner) would have had to infuse in fresh funds, which did not happen.

This link here, taken from an old article of The Hindu, gives the timline of KF Kingfisher Airlines crisis: Timeline - The Hindu

Just would want to quote this from the article

Kingfisher Airlines was set up in 2003 but hasn't seen a single year of profit since it got listed in 2006.

Does it not hint something of the business decisions taken by the company?

Probably an FDI might not have been enough to bail out KF since the operating model itself seems to be insufficient from the point of sustainability.

Just so that the Govt came out with FDI relaxations in Aviation cannot be inferred to mean that it was purposely done to kick Mallya out.

 

[Jaykay767]

Pl do not confuse issues of propriety with prudent policy making. If people feel marans have looted the state, institute an enquiry & handle it separately. Of course, don’t forget to institute such enquiries on reliance, & many other such companies that have looted the country.

 

[Jaykay767]

Auh – sun group does NOT own spicejet. It is a publiclytraded company. Sun group bought some % of shares, that does not make them theowner maybe a bigger stakeholder at best.

Who is asking the Govt to invest? Let spicejet fail &close down like kingfisher. Why should anyone be worried about saving thecompany. This is how capitalism operates.

If tomorrow you start a company & it fails, then areyou okay – if govt or people ask you to take money from your FDs, sell your house& make the company work?????????? After all, it is in public interest !

As far as Mallya is concerned, any govt with a seriousintent to support business should have immediately brought the FDI in aviation bill.Whether with this bill, KFA would have survived or not is speculation.

To me, if a Govt minister/official tells the Banks not tolend to KFA openly on the press & delays FDI bill for over 1.5 yrs, then itis a clear bias!! why should a minister tell Banks not to lend ?, it is the Banksdecision!

 

[Jaykay767]

while there is so much enthusiasm & talk about getting the money back from marans, isn't it surprising, that the Vadra fellow has been forgotten. LOL ! Even after 7 months, the govt has not started an enquiry after speaking so eloquently during the campaign. another bias or ?

 

[auh]

Ok, Sungroup owns only 49% and not a controlling interest. I agree.

I am not after Maran, but entered the discussion only on your comment that there is a bias against South Indian Corporates. I do not think so.

I also do not support the view that Govt should step in. Rather I was presenting a line of reasoning.

KF & SJ are both examples of aggressive short term strategies and bad operating practices. That is all. Their ultimate collapse is their own doing and not due to any North-South bias or vendetta.

Btw, I heard an interesting piece of information that Spicejet had, among its fleets, high maintenance with no uniformity in its fleets, the operating burden of which ultimately weighed it down.

This thread is about SJ. Vadra is a different topic & discussion on the SJ topic does not necessarily negate the validity, or the lack of, of another.