Friday, October 10, 2008

A bailout for everyone?

Bailout – seems to be the latest trend. After Wall Street banks lined up before the US Fed, it’s the turn of India’s private carriers before the Ministry of Finance.

They want the government to bail them out by -
- Offering Interest-free loan with a “bullet” (one-time) repayment after three years
- Bringing ATF under ‘declared goods’ for uniform sales tax
- Reduction or withdrawal of duty on spare parts for aircraft maintenance
- Scrapping customs and central excise on ATF
- 50% reduction in airport landing, route and terminal navigation charges for 24 months
- Freeze on further increases in airport service charges
Vijay Mallya (Kingfisher Airlines) has an interesting aside “The government has not moved at all. It seems it wants everybody in this country to travel by train because the airlines are bleeding heavily”.

Imagine Vijay Mallya in Punjab mail…!!!

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