Archive for April 12th, 2016

A tale of two airlines: Air India and Kingfisher

April 12, 2016

There is something in the airline business. As the old joke goes? How to become a millionaire? Own an airline. How does that help? Well, in this case you move from a billionaire to a millionaire…:-)

The failure of Kingfisher airlines is a stark reminder yet again of this really thorny business area. Though, most would hate to admit now but there was a time when Kingfisher airline was a darling of the investors and media. This was not  just for artificial reasons but the financial ones as well.

And then you have the case of Air India, the perennial under-performer. It ensures the govt coffers can never be full as it always needs money to stay float. Every 4-5 years this is the same story. However, given Kingfisher’s performance and several other private players one can not say this is essentially a public sector problem. Airlines business is actually a problem for everybody.

In an interesting piece, Laveesh Bhandari makes a really bold confession. He prefers the state carrier to the private carriers:

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Shocked by the Panama Papers? Blame Switzerland…(History of offshore tax havens)

April 12, 2016

Stephen Mihm of Bloomberg has a superb piece saying Panama papers shocker is nothing new.

It all started from Switzerland which made offshore financial centres a cool thing:

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