Below is the edited transcript of his interview.
Q: Safety is their predominant concern? Do you think at this point there is a possibility for Kingfisher to revive operations?
A: Today's development was not totally unexpected. In this situation is very difficult for Kingfisher to make a comeback. They do not have a winter schedule; it will be difficult to retain their employees. Kingfisher haven't yet been able to give any concrete plan as to how they are going to pay the salaries and with out that it sounds very difficult for them to make a quick comeback. Kingfisher promoters and the management has to do massive amount of work in terms of recapitalization, whole new management strategy and a business plan to see whether it comes back and then as a passenger one would look forward to making a reappearance if it can.
Q: How long does a suspension continue and what would possibly lead to a cancellation of the licence completely? What would the difference be in terms of this seriousness of a cancellation of licence vis-à-vis just a suspension at this point?
A: Cancellation is a very definitive step which prevents the airline from doing any further business. A suspension as it has happened at this moment still gives an opportunity. If the DGCA has asked Kingfisher if he can still come up with a viable plan to satisfy them that the air worthiness of the aircraft will be maintained, the integrity of the schedules will be maintained and credible or kind of operation would be continued. If they are able to satisfy the DGCA on these account then this suspension can be revoked and the airline can continue to fly again.
Q: What would now be the dynamics that would play out in the aviation industry itself? What would it mean in terms of hikes, fares going forward and how exactly do you think it could possibly be control considering that now we definitely do not have one player in the Indian market?
A: In the last few days when the winter schedule for 2012-2013 was announced and Kingfisher didn't have any flights in that schedule already it was well known in the industry that there will be 19 percent shortfall in the number of seat availability as compared to the previous year. So, this will distort demand and supply position. With 19 percent lower seats being available I see the prices, the airfares moving up by all the other airlines and this has also been a little further compounded by both Air India and Jet Airways scaling down to some extent their operations. I see the fares going up and it is rather ironical to say so but it will help the bottom-line of the other airlines which are working.
Q: How lucrative do you think can FDI in aviation would be at this point because we haven't really heard of anything concrete come through with regards to a possible opportunity for a foreign player actually picking up stake in the Indian aviation companies. Do you think that it is possibly too soon and may be we will possibly hear something more concrete going forward?
A: We have to look at this decision in its proper perspective. FDI in aviation was allowed up to 49% even before this. The only restriction was that foreign airlines could not invest in Indian domestic carriers. This restriction has been removed. It has come at a time when most of the Indian carriers are in difficult financial situation. So, any investor from abroad who wants to put in money will have to do a due diligence.
He may see whether what are the possibilities of getting returns from their investment and only then very cautiously they would proceed to go ahead in this area. There are a few good candidates among the Indian carriers which in the near future would attract some foreign investments, but it will take time because this is a process where a lot of work will have to be done by the investors and the domestic carriers here to make themselves more attractive to investors abroad.
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