In the wake of the ongoing tussle between various stakeholders on the issue of allowing FDI in aviation and multi-brand retail, prime minister Dr Manmohan Singh had given the states the choice to either opt for or be out of it. Though Kerala is ruled by the current UPA government, it chose to remain out of FDI in multi-brand retail. The decision was a shocker as only recently Kerala hosted the 'Emerging Kerala' event to firm up a roadmap and garner more investments in the state.
Though there were several reasons attributed to it, many individuals, institutions, and corporates are not too convinced and have evinced a sense of loss in revenue for the state. Dataquest spoke to VK Mathews, executive chairman, IBS Group & chairman, CII-Kerala for his views on the same.
VK Mathews is also the founder of the IBS Group of Companies and a thought leader in the global aviation industry and is a sought-after speaker at various international events. He holds several important posts in government agencies, academic institutions and trade bodies in India. IBS is a leading provider of next-generation IT products to the travel, transportation, and logistics industries. A specialist in the domain, IBS' products manage the mission-critical operations of major airlines, airports, oil & gas companies, travel cruise and hospitality companies world-wide. Today, IBS is a multinational corporation, serving over 150 clients worldwide from 10 global locations. IBS employs over 2,000 professionals worldwide from 30 different nationalities. Excerpts-
What are your views on FDI in aviation being opened up in India?
This is a welcome step that will help Indian civil aviation industry, which needs both capital injection as well as business and operations know-how to grow profitably and support the Indian economy. FDI by successful foreign airline companies will see accelerated adoption of cutting edge technology, cost efficiencies, competitive fares, differentiated customer services and accelerated growth.
In a liberalized and globalized economic world that we live in, it does not really matter who is the shareholder of a company; what matters is that the policies and laws that govern the operation of a company in our country uphold the interest of our nation and its people. Airlines that are legitimately set up, well capitalized and professionally managed with global standards are what India needs today and FDI in aviation is a step in that direction.
What are your company's offerings which will help aviation businesses scale up their operations with FDI coming in?
IBS provides new-generation IT systems to global aviation industry across all process areas-airline passenger services, cargo operations, flight and crew operations, airport operations and aircraft maintenance engineering. In fact, no other single enterprise in the world offers this range of technology products to the aviation industry.