USA has hit TATA Air India with a penalty of $121.5 million. In Indian rupees, it roughly equals to Rs. 1000 crore. Air India in itself is very weak at the present moment. Before Air India was acquired by the TATA group, it was facing financial mis conditions so tough that it was on the verge of shut down. Further, the Indian government in order to save the airline giant, sold it to TATA group, in the hope that TATA Air India will get back on its feet.
USA has not targeted Air India alone. It has imposed penalty on a total of 5 airlines. The total amount of penalty which the USA has imposed on these 5 airlines combined is estimated to be around $622 million. USA often has fined Indian companies with huge amounts but on the other hand, it is rare that the Indian government, has ever fined any American company.
As of now, the TATA group has its stakes in 4 different airline companies namely: Vistara (51% stake with the remaining 49% stake with Singapore airlines), Air Asia India (100% stake), Air India (100% stake) and Air India Express (100% stake). TATA Group is of the thought that they will merge these 4 airlines and will come up with one giant Airline company. With the current penalty in picture, the TATA group might have to rethink about this merger and fix a date with respect to when it can be completed. Recently, the US government informed its public that since you faced difficulties in air travel, we have imposed penalties worth more than $600 million on airline giants. The name of these 5 airline companies are Frontier, Air India, TAP Portugal, Aero México and El Al.
Why were these penalties imposed?
During the Pandemic, the scheduled flights were cancelled for various reasons and on a regular basis. The US government said that the people whose flights were cancelled have faced losses which would have not happened had these flights were not cancelled. So, the least that the airline companies could do is to refund the ticket money to the respective holder. Usually, when a flight is cancelled and people want refund for their ticket, the airline companies make them wait for their money. They have to write emails, make phone calls and even after so much distress all they get back most of the time is a petty voucher which the airline promotes and says that the next time you book a ticket, you will get a huge discount. Following this lead, The US government decided to jump up to the big players.
The people who had their ticket booked for TATA Air India eventually got their money back but it was about 100 days later and the US government and simple terms did not like it. That is why they were hit by a penalty of $121.5 million. All this money will go to the American people from the government in the name that this compensation is for all the trouble that you have faced in the previous days.
The main motive behind these penalties is basically that the US government wants to set an example for the companies in all aspects of life that you have to take the American consumers seriously and make sure that your services match their requirements. At this point of time, the Indian government makes sure that they too shall be a little more tough on the American companies and put the need of the India people first of all.
#people #tata #airlines #india #usa #flights #passengers #peoplefirst
