Private Airlines have decided to suspend operations on August 18 to protest jet fuel prices and surcharges. Their demands may be legitimate but going on a strike hardly feels like the right approach. Jet and Kingfisher have confirmed this, but low-cost airlines havent yet said anything. It is interesting to see if there will be any government intereference in this matter.
One might argue that these are private corporations, and the government should not interfere with their decision. Yet, airlines have become such an integral part of our economy that the 1-day suspension is definitely bound to have an impact on the economy. In addition, the legalities of airline operators getting together to suspend operations is doubtful. In most western countries, such a move would be termed "collusion" and attract the attention of trade regulators.
When calling to privatize PSUs, we must remember that the legal and regulatory system needs to robust enough to ensure that the nation is not at the mercy of capitalists.
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