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TELANGANA at last…BUT EEC at the National Media Centre When TN politicians can emulate Kerala's Wanted: a second airport for Chennai TN – agglomerate land holdings without alienating ownership Moily’s bold thrust All eyes on Sankara Nethralaya The ‘Jayanthi Tax.’ Adharma of opposition politics Not just in-laws (and outlaws); they’ve renowned academics at the helm! An inexplicable neglect For whom the MIDS bell tolls? The brown list of Venkitaramanan Whistle-Stop Tour of Raghuram Rajan Where is Rajaji? Roaring Ro-Ro facility Readers' Mail Dr C Rangarajan returns to Chennai Five star activism stalls development activity Remembering Indira Sivasailam... Revving up the manufacturing sector Reliance’s TV – 18 ready to launch Tamil News Channel Small units prefers to remain small... Limit foreign borrowings to hi-tech, export potential projects... The nuclear option Computation of GDP – conundrums continue No engine for this car Varuna (rain) in 2015; Vaayu (air) in 2016. Chennai devastated The Gulf aviation boom Infrastructure funding – lessons learnt Secularism and anti-Hinduism Tatas moving out of urea production... When online building permits work…. The Ports’ Pasha expands into Tamil Nadu Robber barons everywhere Solar thermal shines… A Grand Finale for SN’s MS centenary at the US… Padma Bhushan for A Ramakrishna Welcome focus on core competence Tribute Land reclamation from sea appears cheaper! Road development slows down Shale gas and its shallow future Rahman at CIC New IT products of Ramco in the pipeline… Delhi returns to BJP Breaththrough in malaria control Telangana in top gear… A more liberated TN… CIPET hqrs to stay at Guindy – for the present? Tihar, Puzhal not different from Parappana Agrahara Auto components surge… Mu Sigma – is no more When nations steal growth from one another… Permanent secretariat for TN GIM EVM is tamper-proof Alexa – Talking Wikipedia Odisha: spectacular win by Naveen Patnaik Measuring roof tops in terms of KW/MW Return to king coal for urea... to the lack of interest on the part of these to focus on original research. This despite the much lower costs of such research in India. The industry which thrived on the protection of a closed economy and the advantage of a vast domestic market, has failed to organise its evolution on healthy lines Online not in line with brick and mortar businesses... Welcome changes that testify to Jayalalithaa’s return to health Noble nonagenarians... TGS- The king storyteller CSR and CMI: promise of another Srinivasan Ramanujan... 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Increasing non co-operation of state leaders IAS invades NDDB... Fortune 500 review Quality education through the PPP mode S Ramanathan – a versatile musician, musicologist …and of a popular trade leader When the President was rendered homeless… F C Kohli - his concerns all embracing Modi storms Silicon Valley Pharma – overdose of copying More heat than light Plummeting profits of PSBs GNS - 100: our first subscriber An informal presentation - analytical, forward locking... Valli, they are more marginalised Liberal imports idling indigenous capacities ONGC at KG Basin A glass full of corruption He continues the focus on social amelioration The power-full Hindujas Tribute – Manikam Ramaswami Multi-faceted Venkat PPP mode for upgrading Corporation Hospitals Colour-Chem’s colourful KRVS Muffled voices for merit… Protest masters... Inflation: are we emulating Argentina and Brazil? Airlines in India: cost and space Tribute – UCAL Selvan… Why this malaise in medical education? TIAM turns a full cycle Build close rapport with business leaders Revive development banks... Waning interest in public discussions… Boy, can you beat these? Cleaning Ganga – relocate tanneries and install electric crematoria Marketing expert Balagopal is no more S V Raju – a ‘good’ true liberal Quality silica from Neyveli A Grand Finale for SN’s MS centenary at the US… The Swadeshi Trump IPL - no surprise this scam Make standards certification mandatory... R Sridhar steps down as CEO of Shriram Capital Welcome thrust on trade in Modi’s foreign visits... There was flood of milk. Reason: no milk commissioner! Come elections, come advertisements... The few handicaps... Shanti and Sadhana through Music Poor representation for Kerala and TN in Cabinet A welcome initiative by the judiciary Engineering seats go abegging Convulsions in The Hindu Bihar – Nitish Kumar adopts the Lalu model WTO Meet: resolved to meet again The rise and fall of Annamalai University The sea- saw battle continues... Discoms deserve better… The why of tax incentives CII projects higher growth… Why land prices zoom in TN? The balancing act Cement prices continue to rise… Don’t seem to feel the pulse… He saved millions from starvation... A yen for wastage… Like Hinduism: many paths to reach God... B H Kothari - a tribute London, London Narayan Preserving for the future Haul over the coal Welcome GST This scant respect for Law The star of Spencers is no more Sweeter prospects for sugar Sweet news for TN sugar mills An enemy’s enemy is a friend A C Muthiah – his munificent bequeaths to science CRS, a jewel among managers, is no more. Eternal support for capitalisation of PS banks Tax agriculture Recognition to role of NBFCs.... Sri Lanka votes for change Gay abandon in pricing GM Technology at last! Put expensive assets created to use... Strengthen the base... When Ratan Tata visited SRM Chennai and Kolkata miss opportunity to grow as Delhi and Mumbai More Shakti to resource mobilisation... Kulandai was a giant Paytm karo... Maximising the micro pricing … A rich pool of talent not utilised…. Kudos to NDTV... Delhi Chalo... L&T: focus on infrastructure and more infrastructure… Silver Years of Madras Musings L&T- the specialty of special purpose vehicles More tributes to GR Parliament in paralysis... Fall in crude prices help in oil sector reform Tribute – M V Murugappan Towards speedy justice Fuel for thought Streamlining mandatory third party cover No Maha Koottani in TN... Medical costs hit the roof... Adapt Vajpayee dinner diplomacy A think tank for Chennai A proud Madrasi Tatas moving out of urea production... Which side are you, Montek? How Air-India loses customs... IPL type auction for VCs? Should we change the official year? Naidu will soon build a new Hyderabad MHC should not return to its old indisciplined ways Mersal magnified Rs.1600 crore paper board plant of TNPL Excel Generators provide the vital back-up The ‘Ayyo-yes’ is no more No mega rail project for Tamil Nadu Contrarian cousins Gas is the way forward Lesson from Chandrababu Naidu Wise Presidents Fortune for Indian Airlines Another Indian music maestro at the UN Demise of a media baron... The rise and rise of KCP Shipping woes of Chennai companies West Bengal: mindless malignancy When small is no larger beautiful.. China invests in India Of course, Gujarat is vibrant Banning booze... Air Asia India will set new benchmarks for budget travel Modi and the lady Polls and promises The Jan Dhan bonanza Intellectual of rare qualities Editor's Notes Delhi is distant… Godspeed, Chief Minister JJ Naidu’s return augurs well for Seemandhra A friendly business group Focus on quality of power - its only around 170-180V Delhi is distant
 
How Air-India loses customs...

I have in the past mentioned the failure of the national carrier Air-India to derive the maximum benefit out of the boom in air travel. Post the 1990s the massive increase in traffic was initially grabbed by the European giants like Lufthansa and British Airways. Surprisingly, despite bulk of this traffic moving towards the US, large American airline companies have not tapped this business. They have been content to leave the huge potential to be exploited by their partners in the airline alliances like Star Alliance.

After 2000, synchronising with the improvement in technology to fly over long distances with bigger aircraft, countries in the Gulf region focused on the airline business. These countries created productive infrastructure on the ground and invested massively in sophisticated aircraft.  With vast areas of land available in these desert kingdoms, in quick time sophisticated ground facilities were created. In quick succession Emirates, based in Dubai, Etihad in Abu Dhabi, Gulf Air in Bahrain along with their older counterparts of Saudi Airlines and Kuwait Airlines, have been investing massively and winning handsome custom. With much lower airport landing and takeoff costs and with the ability to fly non-stop over long distances, these airlines have been able to earn a lot of custom from Indians travelling to the US, African and European countries and other destinations.

Mounting losses with the consequent inability to invest continuously in the acquisition of new aircraft in large numbers, Air-India has been missing out this boom. Many of the bilateral agreements with several nations have been benefiting its partners and not so much Air-India. The corporation is yet to come out of the effects of its merger with Indian Airlines, loading it with an enormous under-employed workforce, diversified aircraft and ineffective management with bureaucratic control. Its once huge market share within the country has suffered severe erosion. With the recent new policy that permits newer entrants in the business to fly overseas, this competition is bound to intensify further.

Despite the large custom from South India, Air-India doesn’t offer direct, non-stop flights to Europe/US. The passengers are ferried to Delhi/Mumbai for such direct flights entailing higher travel time.

The policy of continuous recapitalisation by the government has mostly gone to keep the airline afloat. A bold new plan to revamp the finances and infusing substantial fresh capital can still enable this Indian icon to regain some of its past glory.

 

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