rti & kingfisher (1)

7/30/2019 RTI & Kingfisher (1)

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As a tool to improve Transparency in

public affairs

Right to information act

Presented By: Group 1


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WHAT IS RTI?RTI stands for "Right to Information". Right to Information is

a fundamental right that every citizen has.

The Act extends to the whole of India except the State ofJammu and Kashmir. [S.(12)]

Under the provisions of the Act, any citizen (excluding thecitizens within J&K) may request information from a "public

authority"


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What does Right to Information mean?It includes the right to -

Take notes, extracts or certified copies of documents orrecords.

Obtain information in form of printouts, diskettes, floppies,tapes, video cassettes or in any other electronic mode or

through printouts.

Inspect works, documents, records

Take certified samples of material.


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Simply because if you go

into a Govt. office and

demand that they tell you

why your work has not been

done, they will not entertain

you or might even throw you

out. If its a law, Then it

becomes harder to do this. If

they do not give you theinformation you want, they

ill have broken a law and can

be punished for it.

NEED FOR RTI


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AIM & OBJECTIVES OF RTITransparency & Accountability in the working of every public

authority

The duty of Govt. to pro-actively make available key informationto all (Sec 4).

A responsibility on all sections: citizenry, NGOs, media.

The right of any citizen of India to request access to informationand the corresponding duty of Govt. to meet the request, except

the exempted information (Sec. 8/9).


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6

Objectives

To set out a practical regime ofright to informationfor citizens

To secure access to information under the controlof public authorities

To promote transparency and accountability in theworking of every public authority

To contain corruption

To increase citizens awareness and ability toexercise their other rights

To equip them to participate meaningfully in thedevelopment process


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It means any authority or body or institution of self-government established or constituted: [S.2(h)] by or under the Constitution;

by any other law made by Parliament;

by notification issued or order made by the appropriateGovernment. and includes any- body owned, controlled or substantially financed

non-Government organization substantially financed directly orindirectly by the appropriate Government.

What does a "public authority"

mean?


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What is not open to disclosure?The following information is exempted from disclosure (S.8) Which would prejudicially affect the independence and

integrity of India.

Security, strategic, scientific or economic interests of theState.

Relation with foreign State.

Lead to incitement of an offence.

Information including commercial confidence, trade secretsor intellectual property, the disclosure of which would harmthe competitive position of a third party


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Application procedure for requesting

information?

Apply in writing or through electronic means in English or

Hindi or in the official language or the area, to the PIO(Public

Information Officer), specifying the particulars of the

information required for.

Reason for seeking information are not required to be given;

Pay fees as may be prescribed (if not belonging to the belowpoverty line category).


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FIRST APPEAL

CITIZENS

PUBLIC

INFORMATION

OFFICER

(PIO)

REQUEST

INFORMATION IN 30 DAYS

IF THE INTERESTS OF A THIRD

PARTY ARE INVOLVED THEN TIME

LIMIT WILL BE 40 DAYS

INFORMATION IN 48HOURS INCASE

OF INFORMATION REGARDING LIFE

& LIBERTY


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SECOND APPEAL

Second appeal

(External)

(within 90 days from the date of decision of first AA butdelay may be condoned if sufficient cause is shown)

*Appeal against ICs decision can be filed in High Courts/Supreme Court, not lower

courts


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Appeal within

90 days

Appeal

within

30 days

+10 days

48 hrs

+ 5 days

30 days

Inquiry to Public

Authority

Central Information

Public Officer

Central Assistant

Information Public Officer

Information related to life and

liberty

Information related to

Administrative and

Quasi-judicial decisions

Information related to third party

Appellate

Officer

SIC/CIC

High Court

Supreme Court

disposition of appeal:

30 days or extend not

beyond 45 days


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14

Overriding effect[Sec.22]

The provisions of the Act have an overriding

effect over anything inconsistent contained in the

Official Secrets Act, 1923 or any other law orinstrument


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Link to Website (http://rti.india.gov.in/)


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File a Complaint


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Complaint Status


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RTI Cost

Application

Fees

Village levelNo fee

Mandal LevelRs 5/- per application

District and higherRs 10/- per

application

Modes Ofpayment

Cash

Demand Draft

Bankers Cheque payable to accounts officer Postal Order

Court Fee stamp


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RTI cost

RTIcharges

Rs 2/- perpage per

copy

CD of 700 MbRs 100/-

DVDRs

200/-

Inspection ofRecordsFirsthour free and

Rs 5/- for each

hour thereafter

1.44 MbFloppy DiskRs 50/-


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RTI The Misuse

The nation does not want a scenario where 75 percent of the

staff of public authorities spends 75 percent of their time incollecting and furnishing information to applicants instead of

discharging their regular duties


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RTI The Misuse

The Right to Information Act provides the information free of

charge to a BPL person, no matter how many pages in the

document. The misuse of the concession given is manifold.

Quoting from a DNA newspaper report, an applicant,

categorized as below the poverty line (BPL), takes away

hundreds of pages of information free-of-charge from

government authorities every day. The purpose was thatselling the documents as scrap earned him enough to buy two

square meals a day.


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RTI The Misuse

Many times the BPL applicants act for someone else. In such

cases, mostly, the applicant is illiterate or in such a state that

he does not even understand what the documents are about.

Secondly, BPL certificates are so easily available in rural

areas that even teachers and two-wheeler owners seek the

information free-of-cost after producing a BPL certificate.

Many times, the privileges given by the RTI Act is used by

some citizens to harass or blackmail government officials


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RTI The Misuse

The right of students to inspect and photocopy their answer

sheets after their evaluation in examinations.

Indiscriminate and impractical demands or directions under

the RTI Act for disclosure of all and sundry information

(unrelated to transparency and accountability in the

functioning of public authorities and eradication ofcorruption) would be counter-productive as it will adversely

affect the efficiency of the administration and result in the

executive (government) getting bogged down with the non-

productive work of collecting and furnishing information


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RTI Amendments ??

The point is, what amendments should be made, if at all. Are

amendments necessary and if they are long due and not

happening, what can be the reasons behind it.

Recently, on 1st November, 2012, the government withdrew

its plan to amend the act. Although the prime minister was of

the view that the act should be amended, a decision was takennot to go ahead. A doubt that arises in our minds is, is this a

decision made under political pressures, does vote politics has

any role to play in this recent move by the government?


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RTI Proposed Amendments

Proposed amendments to exempt file notings.

Granting anonymity to officers.

No access to decision-making process.

Proposed amendment to restrict access to cabinet

documents

Proposed amendment to restrict access to exam-related

information.

Proposed amendment to hike fees.


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What is wrong with above amendments?

The Government claims that the proposed amendments will

allow access to file notings on development and socialissues. However in the absence of clear definitions of such

terms, these amendments will only increase the discretionary

power of officers to deny access to file notings on a majority

of issues.


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What is wrong with these amendments?

Restrictions on access to file notings and the granting of

anonymity to the officers who made them will onlyencourage unscrupulous and corrupt elements in the

administration to act with impunity.

Transparency on the other hand will ensure that all officerswill give their opinions and act in a responsible manner as

they will be subject to public scrutiny.


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Proposed amendment to restrict access to cabinet

documents

The proposed amendment imposes unreasonable restrictionson the citizens' right to access papers relating to the decisions

taken by the Council of Ministers. People have a right to

know the final decisions of the Council of Ministers and what

is contained in the materials that officials have consideredwhen making a decision. High standards of transparency

should apply equally at all levels of decision-making from the

lowest to the highest tier.


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Proposed amendment to restrict access to exam-related

information.

The RTI Act does not currently exempt access to informationthe disclosure of which may adversely affect the objectivity

and fairness of examinations, recruitment and promotion

processes conducted by a public authority. Secrecy in

examination and selection processes allows bad decisions,favouritism and even nepotism to go unchecked, because

examiners and assessors are never required to publicly justify

their decisions.


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Counter arguments in favor of the above

amendments by examples of misuse


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Prime Ministers View

Balance between RTI and

Right to Privacy At times less productive

and waste of Government

Resources

Excessive Judicialisation

leads to less flexibility


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OUR VIEW

Those in public office must accept

that their right to privacy cannot be

an absolute right and must bow to the

larger public interest. Any other

method of striking the balance

between the two potentially

conflicting rights would be againstthe spirit of true democracy and

transparency.


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Use of RTI for Terrorist Activity

Citizens can get any buildings plan by

RTI

Citizens get information with Bogus IDs There is no provision in the RTI Act to

check the authenticity of the people who

seek information.

Fake IDs were found on dead terrorists Ashok Shintre, BMC chief engineer

confirmed that they suspect misuse of

plan by citizen


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RTI used to settle personal

Scores CIC has expressed its concern

RTI used to settle family disputes

including divorces(no issue of

public interest)

RTI cannot stop such frivolous

petitions Cost borne by society


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Example Cases ..

Delhi Resident I P Agarwal sought personal

details of her sister in law

Retired Headmaster Mr.Perreira harassingDoE by asking information again and again

He filed more than 150 RTI applications

Similarly sacked employee of JNUMr.Gopinath filed 67 RTI applications


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Evaluated Answer Sheets

Parents use RTI to access answer

papers of kid's classmates

KSE conducts exam for 8 lakh

students each year Request by KSE to exempt from RTI

Supreme Court held that there is no

right to claim disclosure of answer

sheets or copies, and the same is notpart of the right to freedom of

expression and, therefore, implicitly

excluded from the RTI Act, the

contention too cannot be accepted


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Other Misuses

Misuse by asking Voluminous information

Asking information where there is

unavailability of records RTI used to get free paper


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Conclusion

By the introduction and implementation of the RTI, many Indians have

sought information from various government departments regarding their

financial activities and many frauds have been also brought up to the

notice.

A common man can seek any information from any government

organisation which helps reduce the corruption.

This act is a strong pillar of discipline for the government of India.

Thus RTI Act, 2005 is the best Act implemented by the Indian

Government and it should not be modified in such a way that the new

modifications will degrade the credibility of the act.


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Conclusion

By enacting the Right to Information Act India has moved from an opaque

and arbitrary system of government to the beginning of an era where therewill be greater transparency and to a system where the citizen will be

empowered and the true center of power.

The real Swaraj will come not by the acquisition of authority by a few but

by the acquisition of capacity by all to resist authority when abused. Thuswith the enactment of this Act India has taken a small step towards

achieving real Swaraj.


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AGENDA

History

Current scenario

Accumulated debt

Consequence of crises Start of the crisis

Payment problems

Competitor analysis

SWOT analysis

Fight back

Conclusion

Suggestion


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HISTORY

Kingfisher Airlines Ltd. (KAIR) is a private airline based in Bangalore,

India.

Owned by Vijay Mallya of United Beverages Group .

Tag line- FLY THE GOOD TIME.

Kingfisher Airlines started its operations on May 9, 2005, with a fleet of4 brand new Airbus - A320.

It started its international operations on 3 September

2008 by connecting Bangalore with London.


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Continued

Kingfisher Airlines is one of the only seven airlines awarded 5-star rating

by skytrax.

Kingfisher operates 400 daily flights with regional and long-haul

international services.

In May 2009,KFA carried more than 1 million passengers, giving it the

highest market share among airlines in India.

Until December 2011,KFA had the second largest share in Indias

domestic air travel market.

First Indian Airlines to have in flight entertainment systems on every seat

with guest being able to watch TV in flight.


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CURRENT SCENARIO The DGCA suspended its flying license on October 20,2012.

KFA has temporarily shut down its operations.

Due to financial problem it has reduced the fleet from 63 to 16.


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FINANCIAL CRISIS The Kingfisher Airlines financial crisis refers to a series of events that led

to severe disruptions within Kingfisher Airlines.

Ever since the airline commenced operations in 2005, it has been

reporting losses.

After acquiring Air Deccan, Kingfisher suffered a loss of over 1,000

crore for three consecutive years.

By early 2012, the airline accumulated losses of over 7,000 crore.


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CONSEQUENCE OF CRISES DGCA has suspended the license of Kingfisher Airlines with immediate

effect, i.e., w.e.f. 20th October 2012.

The suspension would remain in force till Kingfisher submitted a concrete

and reliable plan for its revival.

Several members of its staff going on strike.

Salaries delayed.


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START OF THE CRISIS The start of the crisis was the freezing of the bank accounts of the airline

by the Income Tax Department.

As on 10th Jan 2012, Kingfisher Airlines has service tax arrears of 60

crore.

KFA has not been depositing service tax collected from passenger with

the department since November 2011 on regular basis and instead has

been diverting it for other purpose on regular basis.


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ACCUMULATED DEBT KFA has a debt of Rs 8030 crore.

KFA has been loosing money from day one and has accumulated losses

around RS 8000 crore.

Cumulative due exceeds Rs 15000 crore.


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PAYMENT PROBLEMS Kingfisher Airline has staff strength of 6,000 and spends 58 crore on

salaries a month.

Airlines delayed salaries of its employees in August 2011, and for four

months in succession from October 2011 to January 2012.

Kingfisher also defaulted on paying the Tax Deducted at Source from the

employee income to the tax department.


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Continued HPCL: In Jul 2011, Hindustan Petroleum Corporation Limited (HPCL)

stopped the fuel (ATF) supplies for about two hours to Kingfisher airlines

owing to the non-payment of dues.

Bharat Petroleum Corporation in 2009 had filed a case against Kingfisherairlines for non-payment of dues(250 cr).

Since 2008, it has been reported that Kingfisher Airlines has been unable

to pay the aircraft lease rentals on time.

As a result, Kingfisher had to return the A320 aircraft to GECAS.


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Continued Kingfisher received a notice from the Airports Authority of India on

February 2012 regarding accumulated dues of 255.06 crore.

Kingfisher Airlines had not paid some bankers (Lenders) as per the Debt

Recast Package (DRP) with lending banks.

By Feb 2012, Kingfisher has been declared NPA (Non-performing asset)

by following banks

SBI

Bank of Baroda

PNB

IDBI

Central bank

BOI

Corporation Bank


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BALANCE SHEET

SOURCE: MONEYCONTROL


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COMPETITOR ANALYSISATTRIBUTES KINGFISHER JET AIRWAYS SPICE JET

Price 25% higher than jet

Airways and Indian

Lower than

Kingfisher airlines

Extremely low

Permission to fly NO YES NA

IPO Floated Floated Floated

Targeted Customer Both ends of

customer

Both ends of

customer

Lower end of

customers

Positioning Premium Domestic

Segment

Premium Domestic

Segment and

international

Segment

Lowest fares and no

frills


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COMPARISION WITH

COMPETITOR

SOURCE:MONEYCONTROL

INCOME(CR) EXPENSES(C

R)

PROFIT(CR) TOTAL

ASSET(CR)

KINGFISHER 5823.91 7651.81 -2328.01 1947.61

JET AIRWAYS 15477.39 13369.66 -1236.10 12048.61

SPICE JET 4019.11 4541.62 -605.77 708.20

CONTAINER

CORP

4377.49 3037.22 877.88 5606.43


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SWOT ANALYSISSTRENGTH

Strong brand value

Support from parent company

Add 1 million passenger created a year

Weakness

Financial issue due to heavy Debt.

Laying of employees caused a bad image.

Unable to generate expected returns oninvestment done.

Overspending of funds.

Opportunity

The Indian aviation industry is growing at a

rate of 24% per year.

Large number of domestic untapped routes.

Disposable income especially in middle class

has increases.

Threats

Rising fuel cost.

Govt. policies

Least cost carrier.


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CONCLUSIONFinancial crisis of KFA was due to following reasons:

High fuel prices.

Huge interest outgo due to heavy investment in purchase of aircraft.

Overspending/Expenses

Highly competitive industry

Business model was not effective.

Deregulation Act.

Recession-lose passenger(High operation cost due to low demand).


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Fight back: Deal with Diageo

Type Public limited company

Industry Beverages

Founded 1997 (London)

Headquarters Park Royal, London, United Kingdom

Key people Franz Humer (Chairman)

Paul Walsh (CEO)

Products Alcoholic beverages: beer, wine and spirits

Revenue 13.232 billion (2011)

Operating income 2.595 billion (2011)

Net income 2.017 billion (2011)

Employees 25,000 (2012)
http://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Public_limited_companyhttp://en.wikipedia.org/wiki/Park_Royalhttp://en.wikipedia.org/wiki/Franz_Humerhttp://en.wikipedia.org/wiki/Paul_Walsh_(businessman)http://en.wikipedia.org/wiki/Distilled_beveragehttp://en.wikipedia.org/wiki/Pound_sterlinghttp://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/Pound_sterlinghttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Pound_sterlinghttp://en.wikipedia.org/wiki/Pound_sterlinghttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Pound_sterlinghttp://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/Pound_sterlinghttp://en.wikipedia.org/wiki/Distilled_beveragehttp://en.wikipedia.org/wiki/Paul_Walsh_(businessman)http://en.wikipedia.org/wiki/Franz_Humerhttp://en.wikipedia.org/wiki/Franz_Humerhttp://en.wikipedia.org/wiki/Park_Royalhttp://en.wikipedia.org/wiki/Public_limited_companyhttp://en.wikipedia.org/wiki/Types_of_business_entity


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Fight back: Deal with Diageo Diageo would initially acquire 27.4 percent stake in United Spirits for Rs

1,440 a share. The total consideration would be around Rs 5,725.4 crore.

Diageo will acquire 19.3 percent at Rs 1,440 a share from UnitedBreweries Holdings Group.

United Spirits' shareholders will have to approve a preferential allotment ofnew shares amounting to 10 percent of the post-issue enlarged sharecapital of United Spirits to Diageo at Rs 1,440 a share.

Diageo and Vijay Mallya have entered into a memorandum ofunderstanding to form a 50-50 joint venture, which will own UnitedNational Breweries' traditional sorghum beer business in South Africa.

The two companies are also considering the possibility of extending thisbeer JV to maximise opportunities in certain emerging markets in Africa

and Asia (excluding India).


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Fight back: Highlights1. Cash infusion will help USL de-leverage itself

On the financial details, Mallya said United Spirits, which has a Rs 8300

crore debt, will get around Rs 3,300 crore from the deal which will be

used to retire some of the debt, while United Breweries will get

around Rs 2,400 crore.

2. Deal is a win-win for both

Ivan M Menezes, COO at Diageo, said the deal is a win-win for both

companies and will enhance Diageos position in the worlds fastest

growing market as it brings together the strength of both companies.Diageo, however has no plans on increasing its st ake to 100 percent

in the company.


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3. Shares of United Spirits and UB Holdings

Shares of United Spirits closed at Rs 1,359.70, up 1.22 percent percent

and those of United Breweries Holdings closed up 3.3 percent up at

Rs 136.05.

4. Final opportunity to revive fortunes of the group

Some of the Mallya group companies have been in turbulence for some

time. This is his final opportunity to revive the fortune of the group

Fight back: Highlights Conti


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SUGGESTION Foreign Investment (implemented).

Fuel efficient planes for shorter distance.

Avoid aggressive expansion of fleets.

Improve revenue per passenger.


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