32000 Feet High or Rs 17000 crore Low ??

Quite appropriate is the above comparison as this reflects the true condition of the India's commercial Airlines .Currently this is the third year since 2009 that IA has incurred huge losses In the current financial year 2010-12, the Indian airline industry will make a net loss of around Rs 12,500 crore against an estimated loss of around Rs 10,500 crore in 2010-11 and RS 9000 crore in 2010-2009.Its quite early to say about the figures but seeing the past performance and the current scenario I am quite sure that in this case the figures posted now shall be achieved full fledged or they might improve i.e it shall surpass the estimated figure 

Now A days our daily dose of news comprises of scams and frauds in multiple crore figures ,but in this case there seems to be no scam or  fraud so why is the aviation industry has posted for the losses consistently for the third year ?? India is a country of 1.2 billion people and people usually prefer to take the train route than the plane. With a powerful railway network at comparatively cheaper prices, the Indian Railway is the lifeline of the country. It is but a natural thing that people care more about Indian Railway passenger fares than the airlines. Airline is the only logical way to go abroad. Air India primarily caters to the foreign destinations Apparently there are n number of reasons for the same but as to what would be the real cause that has led to the huge public loss and finally who should be blamed for this huge mess the Aviation Ministry or the Government .The answers seems to be indefinate but the reality is that currently the Indian airlines is in a bad shape and need immediate attention and funds .The huge losses are because of high taxes on fuel and rising operational costs. Moreover, cutthroat competition in the sector prevents airlines from raising ticket prices,but on the other hand the private airlines are doing no better we can take up the example of the Kingfisher Airlines owned by the Liquor Baron Vijay Mallya ,who is trying hard to keep things up because its on the verge of lock out any day . In fact Kingfisher Airlines, as expected, has posted the heaviest loss among the listed carriers Other private airlines like Jet Spice have also posted huge losses .Quite unfair is this to the aviation Industry .The possible question that arises now is that What had gone wrong with the AI ?? and What now should be done ?? 

Essentially there is a need of strong recovery plan that could help to bail out the IA .Starting with the very basis the worth of the potential profitable routes should be identified and appropriate steps should be taken so that these routes are used to gain profits .Also there is a huge mismatch in the aircraft deployed and the potential of the traffic on that particular route .The study found that in the A320 family aircraft used on domestic routes were also  bringing in losses. Eight such flights did not even meet fuel costs,68 others just met fuel costs but not the overall cash cost and 46 others were meeting cash costs but not total costs. For the same aircraft family being used on international routes, 17 such flights were only meeting ATF costs but  not cash costs. This is quite critical as these flights are a sure shot loss investment because they might not be able to pay of there jet fuel prices because of the seats going empty  What a waste of both the infrastructure and the potential .??. One more reason for the huge losses are because of high taxes on fuel and rising operational costs.Taxes constitute 40% of an airline's total expenditure against the global average of 32%.This seems to me a total lack on the aviation ministry part.Had there been a proper record and audit the IA might have been able to meet the operational costs .

Interestingly are the so called reasons given or stated but to me this seems to be a sort of decoy to escape the real reason behind the mess.Poor performance was due to lack of freedom in deciding aircraft deployment; foreign carriers getting multiple points of access within India and carrying away traffic; and Indian private airlines concentrating on Delhi International Airport as an international hub.To sum up all the above the Indian Airlines Blame every body else for its losses and blunder except itself .Prior to liberalization the IA had the monopoly over the profitable routes but now it faces a tiff and stern competition with the private airlines in domestic as well as in international routes .

Its true that the business of airlines is a very profitable if managed ,governed and improvised effectively.For several reasons only few public sectors in  India show profits ,rest all are either in loss or die in scam .Looking at the current situation i can probably say that now only few options are left with the GOV .Simple bail out package will not do in this case as it is not similar to the Satyam scam Perhaps one might be the Privatization of the IA . This was a huge success in case of the the British Airways which is now a world airline .The other  solution might be to go with the FDI Policy that the GOV has proposed.Till now I was a strong Non-Supporter of this policy but now  it seems that this might be the only cure or rather I should say only way to bail out IA

Middle Class of segmented India that make up the masses ...

Almighty created man as one but in modern times the so called society has been segmented into a number of classes .These are classified on the basis of many reasons popular once being income ,caste creed or color. The one such class that make up for the masses in India is the Middle class Some might differentiate  us by income or some might casts us on the basis of thinking or so called mentality but Nevertheless we make up the major part of the population in India .The middle income households in the rural areas are constituted by large farmers and small entrepreneurs and salaried government employees.Middle class section has turned out to be a rather dominant section over other sections in recent times

Being a democratic nation whose Ideologies should be based upon equality and freedom  India seems to have chosen a different path .Our daily dose of news comprises of scams forgery and much of a chaos. However we are very much use to the same but it is rather unpleasant and sad .India has a large population (1.2 billion +) which is great if you have a product to sell. On the downside, India has a very large
population.Probably now I can think of the  fact as to why the foreign nation so keen to invest in India one recent example would be the FDI policy issue .

Being born and bought up in a middle class Income family it gives me a perspective or rather an approach towards the conclusion that we middle class people "First save well and Then spend well" .The foreign nations calls this approach to be conservative but no doubt this has helped us during the time of the recession Saving first is one of the major objectives that is taught to us right from the very beginning we start earning .
I can think of no better reference other than mine own as I was well advised by my parents specially my father that one should always save a part of salary as saving ,and a part for investments that would yield in future .This was seemingly tough and difficult at first but it has now become a part of my life and it feels good to have few thousand in account and growing on which i can bank upon during he time of difficulty or probably they might help me in setting up my own business which i intend to do and that is for sure .

With some few examples I can try to answer as how the people in Indian spend ??what do they spend on and what do we prefer over different choices ?? Seemingly India is a developing nation and with this global acceptance there are quite a viable and big market in india...Like as said before India has a large population (1.2 billion and plus) which is great if you have a product to sell.

I am sure this might be the simplest of the examples of them all . In India the most popular mode to travel is by the railways .Although we have options of airlines and private vehicles but the most popular mode is by the rail which is also cheapest and convenient ..Apart from the fact being a cheaper mode of transportation this has proven to be a boon in disguise for the metro cities like Delhi Kolkatta and Mumbai where metro rail or commonly known intercity link trains have made travel much convenient avoiding all traffics . Also another example would be the number 1 selling vehicle in India is not a car but a motorcycle The number of two-wheeler sold during the same period was 11.2 million units.The average sales of these two wheeler increase in the festives seasons like in months of October and November during Diwali ..  Likewise if we look up the four wheeler sales statistics in India i can conclude that nowadays there is a significant rise in the sales of car like Alto Swfit and Wagon R etc.These are not the luxury cars or SUV's but these are classified as family cars .Compared to the sales of the luxury cars or SUV's the demand for these  family cars is very high (We can see that form the recent incident when there was a strike in the Maruti Maneser plant .The strike had led to huge losses and all that lies now is a huge waiting list .People who were excepting there car to be delivered on this Diwali have to wait till the new year )We do have a market for the Audi ,Benz and BMW but they do not make up well in overall sales chart as compared to  other countries like China USA Europe

          Now it seem that I have started to have a glimpse of the phrase I stated earlier
                              "First save well and Then spend well" in the starting"

The country's growth is largely driven by its domestic demand. This is fulled by a growing middle-class population, young consumers, and rising incomes. Middle-income consumers are estimated to rise at a dynamic rate in the coming years creating a  diversified market for global and domestic producer. Similarly, India has one of the youngest populations in the world with a median age of 23 against the global average of 33. About 200 million youngsters are expected to enter the workforce in the next decade. As India enters the sweet spot in its demographic experience, its rising productivity and burgeoning markets will be a major global growth engine.