'People will forgive you for being wrong, but they will never forgive you for being right - especially if events prove you right while proving them wrong.' Thomas Sowell
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Showing posts with label Emirates. Show all posts
Showing posts with label Emirates. Show all posts
Sunday, 24 December 2017
Who pays for Manchester City’s beautiful game?
Nick Cohen in The Guardian
Even though I come from the red side of Manchester, I want Manchester City to win every game they play now. Hoping City fail is like hoping a great singer’s voice cracks or prima ballerina’s tendons tear. Journalists have written and broadcast millions of words about the intensity of Manchester City’s game and the beauty of its movement. You watch and gasp as each perfect pass finds its man and each impossible move becomes possible after all.
Everything that can be said should have been said. But here are words you never hear on the BBC or Sky and hear only rarely from the best sports writers. Manchester City’s success is built on the labour extracted by the rulers of a modern feudal state. Sheikh Mansour, its owner, is the half-brother of Sheikh Khalifa, the absolute monarch of the United Arab Emirates: an accident of birth that has given him a mountain of cash and Manchester City the Premier League’s best players.
An absolute monarchy is merely a dictatorship decked in fine robes. The usual restrictions of free speech, a free press, the rule of law, an independent judiciary and democratic elections still apply in the Emirates federation of seven sultanates. Critics are as likely to disappear or be held without due process as they are in less glamorous destinations. The riches that supply Pep Guardiola’s £15m salary and ensure the £264m wage bill for the players is met on time do not just come from oil. The Emirate monarchies, Qatar and Saudi Arabia rely on a system of economic exploitation you struggle to find a precedent for.
In the UAE as a whole, only 13% of the population are full nationals. In the glittering tourist resort of Dubai, citizenship rises slightly to 15% and in the Abu Dhabi emirate to 20%, but everywhere a subclass of immigrants does the bulk of the work. The obvious comparison is with apartheid: Arab nationals sit at the top, white expats have some privileges, as the coloureds and Asians had in the last days of the South African regime, while the dirty work – from construction to cleaning – is done by despised immigrants from south Asia.
But comparisons with apartheid or the Israeli occupation of the West Bank or America’s old deep south miscarry because the Arab princelings import their working class rather than rule over subdued inhabitants. It’s like Spartans bringing in Helots. Or if images of stern Spartan militarists feel incongruous when imposed on the flabby bodies of Gulf aristocrats, Eloi importing Morlocks. Timid labour reforms are meant to have improved the lot of the serfs. In law, employers can no longer keep them in line with the threat of deportation to India or the Philippines if they do not please a capricious boss. In practice, absolute monarchies repress the lawyers and campaigners who might take up their cases. Now, as always, activists are silenced and workers fear the cost of speaking out.
You should be able to praise Manchester City’s football and condemn it owners. Or, if that is asking too much, you should at least be able to talk about its owners or mention the source of their wealth. If only in passing. If only the once. Instead, there is silence. With Mansour building a global consortium of clubs, Qataris owning Paris Saint-Germain and Emirate money poised to buy Newcastle United, rich dictatorial states are engaging in competitive conspicuous consumption. They are creating the world’s best clubs and may one day take them off into an oligarchs’ league. You are not “bringing politics into football” when you worry about Sheikh Mansour. You are recognising that the future of football is political.
The silence about the fate of the national game covers much of national life. Everywhere you look, you are struck by the arguments that are not being made.
Mainstream Conservatives refuse to join Tory rebels in speaking out against the dangers of Brexit. They like to boast that they are stable and commonsensical types, with no time for dangerous experiments. When confronted with the reckless nationalism of the Tory right, however, they prefer the safe option of keeping quiet until public opinion shifts. Many Labour MPs and leftwing journalists deplore Corbyn and the far left. I speak from experience when I say they talk with great eloquence in private, but will not utter a squeak of dissent in public until Corbyn’s popularity among party members falls. They, too, will speak out when, and only when, they can be certain that it is too late for speaking out to make a difference.
We think of ourselves as more liberated than our ancestors, but the same repressive mechanisms silence us. In the 18th and 19th centuries, few wanted to say that gorgeous stately homes and fine public buildings had been built because the British looted Indians and enslaved Africans. Today, it feels equally “inappropriate” – to use a modern word that stinks of Victorian prudery – to say that a beautiful football club has been built on the proceeds of exploitation.
Football supporters reserve their hatred for owners such as the Glazers, who bought Manchester United with borrowed money and siphoned off the club’s profits to pay down the debt. If billions are available to turn Manchester City or Paris Saint-Germain into world-class clubs, the fans do not care where the money came from. Nor do neutrals who love football for its own sake. For them, it is as miserablist to talk about Manchester City’s owners on Match of the Day as to talk about the factory farming of turkeys at the Christmas lunch table.
Honest sports writers fear the accusation that they are joyless puritan nags whose sole pleasure is ruining the pleasure of others. In Britain’s vacuous politics, Conservatives fear accusations of ignoring the will of the people on Brexit. Labour MPs fear their activists rather than their voters. In both the Tory and Labour cases, the worst that can happen to MPs is deselection. Mail or Express journalists who came out against Brexit would, I imagine, risk their jobs or being moved on to a different story. But no leftwing paper would sack a columnist who criticised Corbyn. The worst they would endure is frosty words from line managers and twaddle on Twitter.
We do not live in Abu Dhabi. The police do not pick up dissidents. Jailers don’t torture them. Yet peer pressure and trivial fears are enough to suppress necessary arguments. If you do not yet have a New Year resolution, it’s worth resolving to treat both with the contempt they deserve.
Monday, 15 July 2013
How Indian aviation was destroyed
Kingshuk Nag in Times of India
Have you read the history of India? If you have, you must be familiar with the conflict of the English and the French on the Indian soil in the 18th century. The fight was to seize control over the Indian markets. Now in an encore of sorts, two airlines from the Gulf region, but belonging to different sultans, are fighting for control of the Indian aviation sector. Help may have come to them, maybe inadvertently, from civil aviation minister Ajit Singh and former civil aviation mantra Praful Patel.
Ajit Singh is in the news these days for trying to ram down the Jet-Eithad deal, through which this Abu Dhabi-based airline will get access to the lucrative Indian market (Indian passengers going abroad) and enable the airline to boost its revenue.
The deal is being looked into, with the Prime Minister’s office having raised some objections, but Ajit is confident of pushing through the deal and has even called on the UPA chairperson Sonia Gandhi to explain everything to her.
The deal was preceded by something unusual: at the end of April, the GOI (which means the civil aviation ministry, which essentially means Ajit Singh) suddenly increased the traffic rights with Abu Dhabi (number of passengers who could fly to Abu Dhabi from India through Indian carriers) to 36,670 per week. This raised eyebrows – including that of the Parliamentary standing committee on transport, tourism and culture which wondered why flying rights were being extended because Indian carriers did not have the capacity (in terms of fleet) to carry these many passengers per week to Abu Dhabi from India. But now with the benefit of hindsight, we are wiser. Under the Jet-Etihad deal, the latter company took up 24 per cent stake in Jet Airways. Incidentally, the Abu Dhabi-based company paid a premium of 32 per cent to acquire these shares. Although Jet will get Rs 8,574 crore in foreign investment due to this deal, analysts aver that the deal has clauses which will in effect turn over the management of the company to Etihad. Thus Etihad will ride piggy back on Jet to transport Indians.
Ajit Singh’s piloting the Etihad deal will have the effect of enabling it to catch up with Emirates Airlines (the official airlines of the UAE). Emirates Airlines dominates the market to the Gulf with 30 per cent of the passengers flying out of India to that area using Emirates to go there. Now Etihad will get a chance to capture part of this traffic and provide stiff competition to Emirates Airlines.
For those not well-versed with aviation matters, the fight between Emirates Airlines and Etihad will not be just for traffic from India to the Gulf but also for onward traffic to Europe and North America. Readers may have noted that a decade ago when Indians went to Europe and North America they often changed flights at Frankfurt. But nowadays, passengers mostly change flights at Dubai. Why? Because Dubai is the hub of the Emirates Airlines and this airlines flies passengers out to Dubai, from where they board onward flights to Europe and North America. This brings enormous business not only to Emirates Airlines but also to Dubai as a place (reason: duty free purchases at the airport and some passengers taking a break in Dubai for a few days, etc). Now within a year or so, Indian passengers will also fly through Abu Dhabi for their journey to Europe or North America and benefit the economy of Abu Dhabi. It is obvious that with its small population: the middle-east market (that is, local origin or Arab passengers flying out of the middle-east) cannot help to create mega hubs for neither Emirates Airlines at Dubai or Etihad at Abu Dhabi and bring tremendous benefits for their respective economies. Both of them can only grow if they can exploit the huge Indian traffic that flies from India to the Gulf and to Europe and North America.
Ajit Singh’s action may have the effect of providing level playing field for Abu Dhabi-vis-a-vis Emirates But the man whose actions resulted in out of the ordinary benefits to Emirates was Praful Patel, who was civil aviation minister for seven years from May 2004 to January 2011. He is the man whose tenure, analysts say, saw the beginning of destruction of the Indian aviation sector. This is even as Emirates got empowered and Dubai became a global hub.
When Praful came to the civil aviation ministry with the formation of the UPA government, Air India was the market leader in India with 42 per cent market share. A proposal had been mooted by the earlier NDA government to augment the fleet of Air India by 28 but the deal had not been finalized. When the proposal came to Praful he raised the numbers to 68 with one stroke of the pen and raised the cost to Rs 50,000 crore. All this was done without any revenue plan or even a route map to deploy so many additional aircraft. The beneficiary was Boeing from whom 27 Dreamliners were proposed to be bought. The Dreamliner was then only on the drawing board. The additional secretary and financial adviser in the civil aviation ministry V Subramanian opposed the move but he was shunted off. Analysts also questioned why an airline with a turnover of Rs 7,000 crore should place orders of Rs 50,000 crore with no idea of how to use the planes. This would only put a huge debt burden on the airline and damage it badly. Interestingly the Comptroller and Auditor General (CAG), which looked at the deal later, reported: “The acquisition appears to be supply driven ... the increase in number does not withstand audit scrutiny, considering the market requirement ... or forecast of the future, also the commercial viability projected to justify the acquisition...”
Caught on the wrong foot due to this acquisition, Patel did something else which virtually rang the death knell for Air India. He merged Air India and Indian Airlines arguing that this would create a much larger aviation entity that could compete better and also utilize the new aircraft which had been ordered. But in the event, this has had the effect of creating a monstrosity and mounting losses. Even today the new entity – which is called Air India – is plagued by severe HR problems arising out of the merger.
As if this was not enough, the airline was forced to vacate (no one till day knows why) its lucrative routes where foreign airlines and even airlines like Jet stepped in. As a good example, in October 2009, Air India decided to opt out of the Kozhikode-Doha-Bahrain route. This was one of the highest-revenue-earning flights of the airline and it was a route which was 511 seats short per week. No reasons were given for the withdrawal and in a short while foreign airlines moved in to exploit the readymade market. The airline’s unions protested but to no effect. Interestingly as early as May 2005 in a confidential memo to the cabinet secretary, the then managing director of Indian Airlines (the merger had not taken place then) complained that the Indian Airlines was being forced by the civil aviation minister and his officer on special duty to take financially damaging and commercially unviable decisions. These included forcing IA to make way for other operators. The MD said that he was forced to seek flight slots for the airlines in the UK and USA during the winter schedule (when traffic was lesser) even as other airlines were allowed to fly to the destinations in summer. Nothing came of the complaints: the managing director made way but the minister continued.
Now we have come to a position that Air India is all but dead, groaning under a massive debt burden and huge losses. Air India has thus ceased to be a player and foreign airlines have captured the Indian skies. This is not the end of the story: with the actions of the Indian ministers resulting in establishment of aviation hubs in Dubai and Abu Dhabi, Indian airport operators are unhappy and rightly so. GVK and GMR, which operate airports in Mumbai and Delhi respectively, wonder why the airports in the two cities cannot be built as hubs. After all the entire Indian traffic that is going to the west through the middle-east can easily be sent to the final destinations through Mumbai or Delhi, if hubs are developed there. This is especially because the long-haul Dreamliner planes are now being inducted into the fleet of Air India. These planes can fly nonstop to any part of the globe. In this way they are a threat to the concept of mid way hubs.
For those who may not be aware, Praful Patel, who represents the Nationalist Congress Party (NCP), comes from a beedi-manufacturing family. After his father died, Patel a product of Campion School and Sydenham College in Mumbai, took over the business and expanded it. The Mumbai schooling made him savvy, running the business from a young age made him street smart. He is popularly known as the beedi king of India.The family company, Ceejay group, rolls over 60 million beedi sticks a year. The beedi leaves are grown in central India, and Patel’s constituency in Bhandara-Gondia although in Maharashtra is not far from Chhattisgarh. Praful Patel’s father also doubled up as a politician and the son followed in his footsteps becoming an MP for the first time in 1991. The UPA government being a coalition government, Patel’s actions were tolerated for a long time. But in the end he was removed and pushed to the heavy industry ministry as full-fledged cabinet minister. All the while in the civil aviation ministry Patel, now 56, was a minister of state but with independent charge.
Seventy-four-year-old Jat leader Ajit Singh is the son of former Prime Minister Charan Singh. A product of IIT Kharagpur, Ajit worked in IBM in the US for 17 years before returning to India and jumping into politics. His Indian National Lok Dal (INLD) – with 5 MPs – became part of the UPA in 2011 and shortly thereafter he was made civil aviation minister.
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