InvestorQ : If "Govt has no business to be in Business", why is the Govt expected to step in for a crumbling Jet Airways?
Tushar Jambhekar made post

If "Govt has no business to be in Business", why is the Govt expected to step in for a crumbling Jet Airways?

Answer
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1 year ago


Will that not be a wrong signal to the private enterprise? Will this not create an environment where private companies will go ahead sustaining losses and finally come to the government to salvage the sinking ship. RCom, Telenor etc have shut down operations and there have been job losses as well during a government talking of a Digital India.


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Isha Tharwani answered.
1 year ago


The collapse of Jet Airways is not a single event but it involves the employment of 20,000 employees. If the Jet Airways files bankruptcy there will be unemployment of skilled labour which will be hard for the government jobs to recruit. If that happens then not only the employment of these will hurts but also government’s UDDAN scheme of providing affordable travel connectivity will hamper. All these incidents occurring just before the general election will definitely shatter trust among people for the ruling government.
This will have a negative impact on government work and so people might perceive a negative image of the government. In order to avoid all the chaos, I think the government has stepped in to save the collapse of Jet Airways.