Sir — The news that Indian skies are opening up for six new airlines this year, may not bring cheers to a country yet to get over the trauma of private airlines’ abruptly suspending their services, citing reasons of monetary crunch. SpiceJet is the second private airline in the country to face a crisis in three years, after Kingfisher Airlines shut down operation in 2012 due to heavy financial losses. While Kingfisher has gone virtually bankrupt, Jet Airways, the country’s second largest airline, was also forced to sell a stake to Etihad due to mounting fiscal trouble. With a majority of the foremost players in the aviation industry showing a proclivity towards a financial free fall, one is prompted to ask whether it is judicious enough to have so many airlines operating within the country in a bid to promote regional connectivity.
After the luxury of travelling by air, which was hitherto restricted to high-flyers in the corporate world and celebrities from the sports and the entertainment field etc, the entry of private airlines, especially the low-cost carriers, opened up new vistas for affordable air travel. With the marvellous run, they have had so far, the tendency shown by private airlines to go belly up is quite incomprehensible.
However, the manner in which the Union Government has been coaxing state-run banks to bail out SpiceJet, is perplexing. Political compulsions should have nothing to do with such decisions. Business sense must take over.