Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
The Airlines blink - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Aug 3, 2009

    The Airlines blink

    Flyers who must have been perturbed by the proposed strike of domestic airlines, can relax at least for the time being as the strike has been called off. Jet airways and Kingfisher along with six other private airlines, had declared to suspend domestic operations for a day (18th August) in order to pressurize the government for a bailout. But a few low cost airlines like Indigo and Spicejet withdrew from the decision because a complete bailout package was not on their minds, unlike the full-service carriers. All they were demanding was a rationalisation of tax on aviation turbine fuel, which accounts for 40% of their operational cost.

    They were also demanding a reduction of the parking and airport charges, which are 50% to 60% higher than international standards and drive up their costs by US$ 250 m annually. Though we don't know how this story will unfold, in our opinion, it is a lot wiser to have a dialogue with the government, rather than alienate thousands of passengers by causing so much of inconvenience to them.

    Oil Ministry set to reply to Anil Ambani
    The dispute over KG basin gas continues to simmer. Last week, Anil Ambani had come out all guns firing in RNRL annual general meeting, accusing the petroleum ministry of bias. As per a leading business daily, the finance minster and the law minister are now rallying around the petroleum minister. They have had several meetings attended by senior bureaucrats and legal experts. In fact, the petroleum is likely to come back with a reply today.

    It may be noted that as per the memorandum of understanding signed between the brothers in 2005, Mukesh Ambani's RIL has to supply 28 million standard cubic metres per day (mmscmd) of gas to Anil's RNRL at US $2.34 per million British thermal unit (mmBtu). RIL would like the price to be US$ 4.2 per mmBtu. The government's position is that minerals found in India are national property and private deals cannot overrule government utilization policy.

    In our opinion, the entire episode is unfortunate because it involves an important asset (KG basin) in a strategic industry (domestic natural gas). The confusion and mudslinging is a very poor advertisement for international oil & gas majors to participate in exploration in India. The government should have ensured that there was greater clarity right from the beginning, in the terms under which the KG basin blocks were explored and developed. With over 70% of our hydrocarbon requirements being imported, surely we need to be more thorough with our regulations so that such problems do not crop up later.



    Equitymaster requests your view! Post a comment on "The Airlines blink". Click here!


    More Views on News

    How to Ride Alongside India's Best Fund Managers (The 5 Minute Wrapup)

    Jun 10, 2017

    Forty Indian investing gurus, as worthy of imitation as the legendary Peter Lynch, can help you get rich in the stock market.

    Will They Haul Off Trump's Statue, Too? (Vivek Kaul's Diary)

    Aug 16, 2017

    All across the country, the old gods become devils. New, gluten-free gods take their places...

    This Company Beat the Business World's 'Three Killer Cs' (The 5 Minute Wrapup)

    Aug 16, 2017

    And what it has in common with beating the stock market too.

    5 Steps To Become Financially Independent (Outside View)

    Aug 16, 2017

    Ensure your financial Independence, and pledge to start the journey towards financial freedom today!

    Let's Hope This Correction Continues (The 5 Minute Wrapup)

    Aug 14, 2017

    Last week's correction is making a number of Super Investor stocks look a lot more attractive...

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    Proxy Plays: A Smart Way to Bet on 'Off Limits' Companies(The 5 Minute Wrapup)

    Aug 4, 2017

    The small-cap space is full of small players that are clear proxies to great growth stories and Indian megatrends.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms


    Aug 16, 2017 (Close)