EU Carbon fees ruling effect on Airline stocks!

#1
European court of Justice today ruled that all foreign carriers must pay carbon fees starting in effect from January 1 next year. I was of the opinion that this will have effect on the already sagging airline industry. Any other comments from other members is welcome.

Shepherd
 

Sunny1

Well-Known Member
#2
European ...keep can tax....outside carries.....
America can kill BPO .....
BUt if ...India stops FDI....they are disappointed...and start bashing India...

could you explain why airline industry is sagging.....
why they would sell tickets for loss....
I think lot of corruption is involved there by profits are being transferred somewhere and in ...balance sheet ....start going bad...
 
#3
European ...keep can tax....outside carries.....
America can kill BPO .....
BUt if ...India stops FDI....they are disappointed...and start bashing India...

could you explain why airline industry is sagging.....
why they would sell tickets for loss....
I think lot of corruption is involved there by profits are being transferred somewhere and in ...balance sheet ....start going bad...
As per my view, the airlines is not that profitable business. Especially with vagaries in demand for air travel, oil price fluctuations, regulations and stringent maintenance rules.

Airlines vie with one another for market share and people want to spend more or less same money on air travel. Thus, airline industry has got into the practice of participating in oil futures markets to hedge their fuel bill. The extent of success with this is not known.

If you happen to see Kingfisher, it has not made profit from 16 quarters and I expect them to be in loss in the next quarter as well but the stock is holding up as some speculators/investors believe it might be bailed out or in long term will return to profit.

FDI is important for MNC's because they see a market with 1.2 billion people and revenue growth at least in the medium term is assured. Developed economies have maxed out on debt (consumer and government) and if the retailers have to show growth, one area that they could focus would be on emerging markets with high population.

This has a problem that the earnings from India will be siphoned out (at least majorly) and converted to dollars or Euro (if it survives) or GBP. This will invariably lead to weaker rupee in the long term. A weaker rupee will ensure high cost of products imported (including the ones offered by retailers) and high inflation.

Our IT sector is largely because of low cost. The argument in the developed countries it can not be a one way bet. If they are allowing outsourcing , we should allow things like FDI. That is in short, mutually beneficial relationship (of course for corporations only)

Shepherd
 

Sunny1

Well-Known Member
#4
So fate of airline....have to be wait and watched......


regarding outsourcing and fdi....the deal is not equal...FDI will take out much more money from India then what India is getting from outsourcing...
plus....FDI....play politics ....to clean off competition first...then start business...its their regular practice. ....

Dont know about airline....but if airline in loss.....then why are they spending huge money building newer airports...ditching existing airports......I feel its simply waste of money...
In the end ...I feel ....airline industry....mis...management and disorganized....
and other thing...we dont know how much and to what extent corruption is involved ..

we have to wait and watch....
 

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