NACIL in dire straits
The National Airline Corporation Of India (NACIL), formed after the merger of Air India with Indian Airlines, is bleeding and, we hear, things are going from bad to worse. Recently, the CVC questioned the viability of an agreement that NACIL signed with courier company GATI for domestic air-freight. The airline has cancelled a host of flights to Europe and the US to combat declining passenger numbers. And now, with Jet Airways entering the lucrative India-Dubai route, Air India is drastically cutting fares. Clearly trying times for the PSU.
Rising inflation continues to concern North Block. Despite RBI’s intervention, officials feel monetary measures will take at least six months to have some impact. While they have heaved a sigh of relief at the softening of crude prices, there are now fresh worries about the impact of the patchy monsoons this year. Says a senior bureaucrat; “It appears that the monsoons so far have not been well distributed. We are concerned that it may take its toll on the kharif crop and stoke inflation.” Clearly, an unsettling prospect for the UPA administration in the run- up to the general elections next year.