What is the investment in the cargo business?
Air Deccan co-founder Captain K J Samuel and I have equally contributed $25 million as initial investment in Deccan Cargo. We will require a further $25-30 million once the business becomes operational. Some investors have shown interest in the project. I already have two term sheets in hand. However, I’m not in a hurry to do a deal. We will wait for the cargo business to take off. That will give investors confidence in the business and also push up valuation.
What do you expect from the new government for the aviation sector?
First of all, the government must ensure that monopolies and cartels are not formed in the aviation sector. The government must put in place a legal framework to prevent players from acting as cartels to fix prices. The imposition of surcharge on air travellers by all airlines together is a prime example of cartelisation in the sector.
Secondly, the government must not deny licences to new players on the ground that the aviation sector is already bleeding. The government must create conditions that will prevent emergence of monopolies. Even foreign airlines can be allowed to operate as long as they do not get the management control of the Indian company.
All big cities in the world have multiple airports. The government has created monopolies in this space. It must work its way out of this. The government must play a larger role in creating infrastructure and step in where private players fear to go.
Are you disappointed with your electoral performance?
I have never wanted to be a 24x7 politician. These 24x7 politicians have not been able to do much for India. There is still so much of poverty and illiteracy in the country. I had no intention of giving up my job. I would have continued to be an entrepreneur, as in that role I create so many jobs. That is very important in current economic conditions.
My gameplan for election was simple: I thought I would be able to encourage more people to come out and vote. Just about 30% people came out to cast their vote. If I were to ensure that 60% people voted, all the new votes could have come my way. But there is a lot of cynicism among the youth. The number of votes did not go up and those who voted, did so on expected lines. Most voters used the polling day as an extended weekend and went out of the city. The government should stop declaring polling day as holiday.
Air Deccan co-founder Captain K J Samuel and I have equally contributed $25 million as initial investment in Deccan Cargo. We will require a further $25-30 million once the business becomes operational. Some investors have shown interest in the project. I already have two term sheets in hand. However, I’m not in a hurry to do a deal. We will wait for the cargo business to take off. That will give investors confidence in the business and also push up valuation.
What do you expect from the new government for the aviation sector?
First of all, the government must ensure that monopolies and cartels are not formed in the aviation sector. The government must put in place a legal framework to prevent players from acting as cartels to fix prices. The imposition of surcharge on air travellers by all airlines together is a prime example of cartelisation in the sector.
Secondly, the government must not deny licences to new players on the ground that the aviation sector is already bleeding. The government must create conditions that will prevent emergence of monopolies. Even foreign airlines can be allowed to operate as long as they do not get the management control of the Indian company.
All big cities in the world have multiple airports. The government has created monopolies in this space. It must work its way out of this. The government must play a larger role in creating infrastructure and step in where private players fear to go.
Are you disappointed with your electoral performance?
I have never wanted to be a 24x7 politician. These 24x7 politicians have not been able to do much for India. There is still so much of poverty and illiteracy in the country. I had no intention of giving up my job. I would have continued to be an entrepreneur, as in that role I create so many jobs. That is very important in current economic conditions.
My gameplan for election was simple: I thought I would be able to encourage more people to come out and vote. Just about 30% people came out to cast their vote. If I were to ensure that 60% people voted, all the new votes could have come my way. But there is a lot of cynicism among the youth. The number of votes did not go up and those who voted, did so on expected lines. Most voters used the polling day as an extended weekend and went out of the city. The government should stop declaring polling day as holiday.