Antarius wrote:CaliguyNYC wrote:dtw2hyd wrote:
So many a.net twisted facts and definitions. Let me try in the form of simple questions.
Who is SBI?
A lender took over control of the company by throwing out BODs
An outsourced consultant managing the sale process
What is A.net definition of the bailout, which is being frequently BLTed.
Is it in reference to 8500 Cr? That is gone, very little chance of recovering with SBI's skillset.
Is it in reference to 1500 Cr new loan? No one is expecting SBI cartel to give new loans.
Tiny (vs) Huge impact
1200 Cr NPA on SBI gross NPAs - Tiny
9W going out of business on Indian economy - Huge
Well said but people don’t want to hear it. Some are so focused on Jet disappearing that they can’t see the big picture. Spice and Indigo have totally flailed in coming up with a plan to replace Jet’s international capacity. Will BOM and Del be hurt, sure a little. But smaller towns in India will really feel it as it has become harder to buy one ticket for tourists to reach smaller towns. Skyteam no longer is selling tickets to cities outside of DEL, BOM and BLR. But I guess Spice and EK’s codeshare will solve the international issue.
Again, what's your plan? In one post you say that the lenders should try to recoup value on an NPA. Here you bemoan 9W disappearing...
What is left to sell of 9W, even without the debt? Slots will be returned and reallocated, aircraft are all gone. All you have is a brand name that's worthless now.
9W failed on it's own accord. Does it suck when the market corrects itself in the short term, yes. Such is life everywhere. Others will fill the place as they have so far.
Also, to add, it isnt like we want 9W to fail or are super gleeful that they did.
1. Many of us saw this coming for a long time. So we knew it would happen
2. I personally am glad the government did not get involved.
Having traveled to India several times over the years and having to fly Air India occasionally (or *shudder* Alliance Air), the government is clearly incapable of handling an airline.
IMO, the key takeaways here are
1. The regulations and taxes for aviation in India are not business friendly (known, but highlighted again)
2. India needs better bankruptcy laws.