In India, private airlines have a tough field. They have to pay high rates for their fuel (ATF costs in India are higher than most places in the world), the conversion to new airports run by private operators are loading user convenience charges that passengers do not like to pay, and it is a cut-throat business with high fixed charges and a variable market that has been severely affected by the economic slow-down.
So, most private airlines are in the red, owing money to fuel companies, to airports, to their debtors, and they do not see a solution in sight. The Government in the past has not provided them any solution in the form of lower taxes on ATF, or any kind of monetary hand-out.
Eventually, the Federation of Indian Airlines, comprising of 5 of the private airlines called for something unprecedented, a one day strike on August 18th where they would stop all operations, and refund all tickets. This was primarily meant as a pressure tactic, and they must have got bold after seeing Anil Ambani take on the Government and not suffer any apparent problems. However, the Government response was swift and harsh. The Government threatened to take strict action, including reviewing their licenses.
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For those of you unfamiliar with the concept, calling cards are like the recharge cards for pre-paid phone connections, except that you use them to make local and international calls. How do they work ? You pay money, buy a card for a certain value, say Rs. 500; next you get a toll-free number. Call the toll free number, use the pin number mentioned on the card and then you are all set to dial the actual number that you need. Why is this not available till now ? Using such a system allows a user to dial STD / ISD using other providers other than his regular phone company, and no phone company wants to have such a system in place. Such a system however would allow a consumer to use the most cost-effective such service available, and the consumer in fact is not tied to their regular phone company. It has taken long enough for the Department of Telecom to allow such a service to be available, and from the note, it would seem that the department is still not ready to let customers use the most cost-effective service, namely that of Internet telephony:
The Department of Telecom is believed to have allowed sale of ‘calling cards’ for making domestic and international calls from any phone – a move that could bring tariffs down. Calling card allows users to select an operator for making STD and ISD calls as recommended by telecom regulator Trai in August last year. The Telecom Commission, the policy wing of DoT, is understood to have referred back another proposal for unrestricted Internet Telephony back to the regulator for more clarifications.