This refers to the editorial “No bailout needed” (October 11). You are absolutely right in saying that no airline company needs and deserves any bailout. The central government is already committing a grave error by sinking taxpayers’ money and continuously funding huge losses of Air India. The banks should not commit the same error. Hence, banks should not be put under any pressure to bail out private airline companies. Ultimately, of course, if banks are unable to recover loans given by them to some of these companies because of latter’s financial mis-management or a failed business model of these airlines, it would mean that these banks’ depositors and other borrowers have to bear the cost of low fares of these airlines’ travellers. It would be just another example of cross subsidisation which is quite common in our economy.
Narendra M Apte, Pune
