Quicksilver Master

Clearly the tycoon with the magic touch at the moment is the reclusive Mumbai-based R.V. Pandit. His newfound ability to flit into the Manmo...

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Clearly the tycoon with the magic touch at the moment is the reclusive Mumbai-based R.V. Pandit. His newfound ability to flit into the Manmohan PMO is apparently at the same level of ease with which he slipped into the Vajpayee structure. Whether its an old and personal connect with the quiet Economist-turned PM or the result of Pandit’s strong links with the Arjun Singh coterie, this is a remarkable and smooth transition. Only those on the inside track know that the publisher with the midas touch is networked both with top intelligence agencies as well as the in the upper echelons of defence in a manner that few tycoons have ever attained. It is said to be a Pandit coup, and a tribute to his powerful connections, that Pranab was pushed into hurrying up the coffins case. Since Pandit’s buddy George Fernandes needed it done, it’s clear that his bidding is effective wherever it matters. Almost everything succumbs to this effective charm offensive that Pandit unleashes.

For the quiet and reclusive tycoon this high level access is clearly something he has to use very carefully now. Chances are that those who were favourites in the old establishment will have their pet causes scrutinised in detail, during any changeover. But then Pandit knows how to manage this very effectively and we will be seeing more of the man, in play, during the days to come. Unless of course, somebody catches on!

Busy skies

In spite of the recent increase in domestic airfare by 10 per cent, which was made by Air Sahara, Jet Airways and Indian Airlines, along with the N.S. Narahari’s Air Deccan, the tycoon’s airlines will still be a low cost airlines. This is because the rise in fares will be to Narahari’s advantage, whose fares even before the hike were 50 per cent cheaper, compared to other airlines. So in spite of the hike announcement, Air Deccan will still be the lowest cost airline, till Vijay Mallya gets airborne as announced recently.

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Emulating his move, others like Singapore Airlines have come out with links about launching their own low cost version, while and our very own Air India is about to bring out ‘Air India Express’ which will service the Middle East and South East Asia. All of them may affect Air Deccan.

This will mean more choice in economical travelling. And Narahari is rather disturbed today. Not just because of serious competition in the offing, but because of teething problems, beginning with the hiring of 30 pilots for his Airbus A-320 aircrafts, which will arrive by July. Air Deccan will soon be joining the likes of Indian Airlines, Jet Airways and Air Sahara on trunk routes. Due to this, there is a mad rush for pilots. So naturally few turned up for selection at Air Deccan’s office. But not one to be let down by that, Narahari devised a new method to keep them coming, by declaring that their pay scales would be linked to the load factor each month.

The pilots he now hires will be trained on an Airbus aircraft in France. Though they will have to pay for the training, 85 per cent will be reimbursed after they work for three years. Narahari is aware that most pilots leave very soon, so he has put in the above clause, as it will bind them for at least three years to Air Deccan.

Meanwhile 10 foreign commanders have been chosen to take over in the beginning, until the chosen pilots complete their training, and a cabin crew comprising only 50 women will also soon be introduced.

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Narahari is constantly thinking up new ways to woo his flyers. He recently decided to fly to 20 new destinations including Bhavnagar, Bhuj and Baroda. In the mean time he is attempting to raise about $100 million through road shows in London and Singapore, for which he has 30 per cent equity on offer.

With the increase in fare and the number of low budget airlines, which are ready to fly, one can expect a lot of excitement i the skies— especially Narahari, who is hoping to fly two million passengers by March 31, 2005!

Dilip Cherian, runs a public affairs firm Perfect Relations. He is an economy watcher and tycoon tracker. None of the people he writes about are his clients. Send your feedback to dilipcherian@now-india.net.in