My Dream is to Fly !!

Yes its not a mere English hit son .. the dream indeed is to fly .. the dream is to rise as a Phoenix from the ashes and not stay a mere Kingfisher anymore. The Indian aviation industry has been caught in the Kratos-esque vice grip of high oil prices on one hand and competitive air fares on the other. The quarterly results clearly show that all the high soaring airlines have reached an all time low barring IndiGo. So is there a turnaround in the offing, lets investigate.

First and foremost, India is abuzz with Tata, India's premier brand entering into a JV with Air Asia. It is the first foreign interest in the large Indian aviation sector.Air Asia finally received regulatory approvals from Foreign Investment Promotion board to invest in this venture. Air Asia's stake is 49 percent and they plan to start the services from Chennai by end of 2013. Major Whistle Podu moment this.

The new airline venture will be in partnership with the Tata Group and Arun Bhatia-promoted Telestra Tradeplace. Its basically adds three vital components: Name of Tatas, Money from Bhatias and Queens Park Rangers losses from Fernandes. Only the football fanatics will get this joke. Others please google it.

But the experts have given a thumbs up to this joint venture saying that it will help domestic aviation industry grow and offer better deals for the passengers. Only time will tell.

Secondly, Etihad's much awaited buy of equity stake in Jet. Etihad, which is expanding globally, has been in talks over an equity stake in Jet since September after India relaxed ownership rules and allowed foreign airlines to buy up to 49 percent in local carriers. Etihad is however looking for a stake of 24 percent valued at about $330 million. 

The deal promises brighter days for both the parties. For Jet, it will propel them to the top of the pile and add much needed boost of funds. As for Etihad, it will guarantee them presence in India - the potential international commerce hub in the years to come. System well Sheikh-en I must say.

However the deal is poised at a standstill as the businessmen from the Gulf are extra cautious of their investment. There are several instances of past failed forays by Gulf investors into India and Etihad does not wish to be bitten by the same bug. More recent news suggest that August will be the likely time that the knot will be tied. Mind it, this is still a much better love story than Twilight. 

And lastly the never ending Kingfisher saga. The Airports Authority of India has asked the airline to cough out the pending Rs. 300 crores or let the flights remain grounded forever. Nowadays the only things remotely close to Mr. Mallya which are sky high are the sixes being hit by Chris Gayle and Virat Kohli's ego.

The renewal of flying permits seem to be a distant dream and the maintenance of the aeroplanes much costlier than Sid Mallya. I truly sympathize with Mallya Sr. but government and SBI have not given up on him. Government with their vested interests has to open up new avenues to get in foreign money have announced 49 percent partnership and SBI are selling heaps of paper scrap earlier know as shares/scrips of Kingfisher Airlines Ltd. 

So its not a strange thing that at the recently concluded IPL6 auction, Mr. Mallya insisted upon auctioning his Kingfisher Airlines and even his heir Mr. Sid Mallya !! 

So this is the current situation of the Indian Aviation industry with Ajit Singh Chaudhary at his helm. The other Ajit is pissing in the dams while for this Ajit the scenario is damn pissing. India shinning !!

Mauritius - From Honeymoon Heaven to Tax Haven

Mauritius is a little island on the southeast coast of Africa known for its scenic beauties. No wonder many couples across India longing for a 'Bollywood ishtyle' Swiss honeymoon settle for adventures on this isle. But off late they are facing serious crisis getting air tickets for Mauritius ... naah this is not a dig at Kingfisher Airlines !! These Kingfisher Airlines jokes are all over the place but their flights are not *smirk*. Anyways, the ticket problem have arised largely due to top corporates flying to the beautiful isle, not for its scenic beauty but for its financial astheticity.

Yes, Mauritius apart from being a honeymooner's paradise is also the paradise of tax evasion. Since 1992, this country is single handedly pumping large amount of money through foreign investments as a large number of investors who trade on Indian stock markets operate through this route. Basically it is to save tax on the gains coming out of business in India and well well ... surprise surprise ... Mauritius and capital gains tax are as alien as Uday Chopra & acting !!

But the resemblances between the honeymooners & moneymakers are uncanny. Honeymooners go there once the institution (of marriage) is in place. Moneymakers come from there to setup the institution in place. Honeymooners want to do their 'real' business away from public eye. Moneymakers ditto. Honeymooners want to save some money so they settle for this place. Moneymakers ditto.

Although the government suffers, because every Toda-phone will find a Mauritius or a Cayman Islands or a 'I will float a subsidiary under my uncle's name' Islands and give income tax a skip. So now when the government changes the rules, all these investors are running helter-skelter like little urchins to their prime ministers and presidents.

So the question still remains, to stick to the judgement and risk huge amounts of FDIs and investors moving out or reverse it and plant a capital L on the forehead. Plus the wrath of displeasing Mauritius and indirectly the honeymooners and their votes and thereby the majority. Afterall everything counts !!!

Please dont leave now to get hold of an atlas and spot Mauritius the post hasnt ended .... well ... just messing with you ... so long !!!