No ‘death of an Indian!’

I read your article – ‘Death of an Indian’ in the Corporation section, where you have talked about the debilitating condition of Indian Airlines. But how can one forget that it is the oldest domestic airlines in the country and all the other private airlines came after it, obviously with extra offerings. But, on the other hand, Indian Airlines still remains one of the most preferred airlines by the Indians. Also, one cannot forget the fact how it revamped itself quite many times to make itself at par with others. I have travelled through Indian and other major airlines too, I couldn’t find much difference in terms of services offered. I find the difference only in terms of people’s psychology and nothing

Deplorable Economy

After reading the article ‘Did Someone utter the ‘R’ word’ in the issue dated July 12, 2007, it’s quite startling to know about the deplorable situation of the economy. Truly, a timely realty check on the state of affairs of the US economy. It’s even more appalling to learn that indicators, like the median home price, are all set to experience their first decline, since the Great Depression. Moreover, the manipulation of statistics seems despicable. The article, drenched in incisiveness and backed by some substantial data, makes you believe that the US recession is round the corner.

The Tale Of Gain And Loss

This is with reference to the article ‘Divine gains’ in last issue of B&E. It does take into account the future prospects of the satellite industry. However I don’t agree with the writer on the issue that the situation is gloomy for BC Partners. Intelsat is showing good growth ever since it has acquired PanAm Sat. Also with a rise in demand for DTH, HDTV and IPTV there will be no looking back for this company if they venture into high growth segments such as Asia, South America et al.

The Summer Blues

The article ‘When the fizzy lot turn dizzy!’ in B&E (issue dated July 12, 2007) had a very catchy headline. However, I think, the writer was too harsh on the colas. The story does have a lot of data stressing on the fact that these cola majors are seeing a downturn, but I feel that it can be just a passing phase. Such big companies face both good times and bad times. The best part is how they overcome the tougher times. In India, the global cola titans did face problems due to pesticides controversy, but it’s all a part of the game. I do agree that Coca-Cola has lost its crown of being the world’s most valuable brand, but people all across the world still drink cola, which is enough for us to measure the power of cola... no other data can alter that very fact.

It’s Really Interesting

Hi, I really find the entire IT section of Business & Economy very interesting and, unlike all other magazines, the section is also easy to comprehend. I was amazed to read about the concept of online windows- based desktop and have registered for the same, as well. It is an absolute delight to work for a frequent traveller like me and so convenient as well. Thanks for informing about such new developments happening in India and across the globe. Hope the stories would continue to reamin lucid and simple in language. Keep it up in the future as well.

Man Of Controversies

This is in regard to the article ‘To Sir with Hate’, in the Policy section, which has highlighted the recent developments related to the well-known writer, Salman Rushdie. I must say that the issue has been brought out very well by the author and all the controversies against the man are well covered. The article very aptly argues about the urgency to confer on the controversial author with the title ‘Sir’. Actually Salman has become a tool in the fight between the two countries and it’s very true that he has been alleged with so many controversies, one after another. Being a regular reader of B&E, I always make sure to read the Policy stories, as the issues covered under this segment interest me a lot. Keep it up!!!

‘Bell’s ring in ‘Canada’

Watch out! As Bell Canada agrees to the terms of being taken over by a private alliance headed by Ontario Teachers Pension Plan. This $48.5 billion deal would mark the principal leveraged ever buyout in Canada. The shareholders’ nod to takeover this Canadian private telecommunications player would create the largest takeover in Canada. The Toronto based pension plan with assets worth $99 billion, invests & manages the retirement funds for Ontario’s 167,000 active & 104,000 retired teachers. With a 6.3% stake, the pension plan happens to be Bell Canada Enterprise’s (BCE) most important shareholder. A leveraged buyout of a mammoth public company by a private partnership, really makes the deal unique. Michael Sabia, Chief Executive, BCE said that the proposal is a 40% premium over the average price for BCE shares during the past year. Chairman, Richard J. Currie further added that the special step is for the shareholders who were always valued. The Group led by the pension plan, managed to outwit several other major bidders including a consortium of New York-based Cerberus Capital Management LP with Hong Kong based billionaire, Richard Li’s, Pacific Century Group & the Canada Pension Plan Investment Board with a backing coming from American buyout firm Kohlberg Kravis Roberts & Co.

And we are B’ack in ‘P’lace!

British Petroleum Plc. (BP) anticipates restarting production of 10,000 barrels per day (bpd) of Alaskan oil at its massive Prudhoe Bay oil field. The units had stopped production on June 18 this year, after workers reported a small leak in a 24-inch diameter flow line. The leak has lead to spilling of less than a gallon of crude oil on top of a gravel pad. BP is presently substituting an 80-foot (24 metre) section of the flow line. Output at the 400,000 bpd field is already below regular levels owing to customary maintenance at certain installations.

Boeing adds $2 billion worth wings!

Boeing has bagged a $2 billion US Air Force contract. It entails engineering services & the manufacturing of 242 wing sets for the A-10 fleet. The contract spans between 2007 & 2018. Charles T. Robertson, Vice President of Boeing Support Systems’ Maintenance, Modifi cations & Upgrades Division said that the contract extends the life of a valuable platform & that Boeing’s integration expertise & lean manufacturing techniques makes the company well-prepared to meet the challenges presented by the contract. For easy installation, the replacements wings would be delivered in parts. Boeing has already partnered with various suppliers in order to fulfill the A-10 contract successfully.

It’s pay back time Komag...

Media manufacturer Komag is being acquired for $1 billion. Western Digital’s (WD) all cash deal will give Komag shareholder $32.25 per share. The acquired entity would be merged with a subsidiary of WD. Komag manufactures hard disk platters that are used not only by WD but also by competitors; Seagate & Hitachi. The deal will result in several cost benefits for WD as it will manufacture its hard disk in-house from now on. Legend has it that previously; WD had its own manufacturing unit of hard disk platter, later sold to Komag at a loss. Apparently now WD wants its dues paid! The deal is expected to close by 2007 end.

Genetically modified profits...

Monsanto has posted a 71% jump in the third quarter income primarily due to huge demand for its genetically modified corn. Net income increased to $570 million from $334 million a year earlier. The St. Louis-based company attributed its excellent performance to the demand of its branded corn seed products in the United States, Italy, France & Germany. The sales of seeds & genomics unit stood at $1.7 billion for Q3, a hike of 32% from the previous year. The company is making capital investment worth $610 million over three-years covering the US corn production facilities. Confident, Mosanto has apparently hiked prices of the DeKalb brand.

Labour unions ready to Jet set!

They have been facing the wrath of luck for the last six years. Now however the US airline labour unions are all set to retrieve their lost wages & the power they previously enjoyed. The labour unions are hopeful as some of the airliners are on the way to recovery & some even mulling manpower expansion. All major airliners had adopted the retrenchment route after they nearly went bankrupt due to rising fuel prices & competition. Delta for example had cut 6,000 jobs & United reduced wages & brought down its workforce by 25%. Northwest saved around $1.4 billion by cutting labour costs. Contracts with various labour unions were declared void as well. Analysts are of the view that after this long struggle, the labour unions have emerged as better negotiators. With airlines coming under fire because of complaints relating to being understaffed, the unions are sure to be at a better bargaining position.

Wii didn’t start the fire...

June in Japan spell good news for Nintendo as Wii left Sony’s PS3 behind. The ratio as per Enterbrain, a game magazine publisher, is 6:1. By June 24, Wii clocked 270,974 unit sales while Sony sold only 41,628 units of PS3. Microsoft sold 17,616 units of Xbox 360 in the same period. In April, the ratio was 4:1 & in May it changed to 5:1. Wii’s brilliant performance can easily be credited to its motion-sensitive controller. The system permits the players to direct onscreen play by swinging it like a baseball bat or wielding it like a sword. The feature has proved very popular. Sony on the other hand failed with PS3 due to its exorbitant prices & also the short list of attractive soft ware & cutting edge features.

Sprint Nextel’s diversified branding!

Sprint Nextel is all set to revamp its look with a new advertisement campaign. The third largest player in the US wireless service market hopes to better its growth via the new look. The national campaign would focus on its data services & its network’s speed. The campaign would be available across all media including television, print, cinema & outdoor ads. Though Nextel brand has been kept out of the campaign, it has been included in spots where its push-to-talk walkie-talkie style feature is being promoted. In earlier campaigns, when both Sprint & Nextel were included, it had sent out a confusing message. Reason being, that while Nextel is mainly targeted at business clients, Sprint is more focused on end consumers. This time, though, there will be no such brand confusion hurting the future.

AT&T tests rustic manoeuvres!

In a strategic move to penetrate the rural & suburban market, Dobson Communications is being bought for $2.8 billion by AT&T. Shareholders of Dobson would receive $13 for each share. The deal is yet to receive the regulatory approval which is expected by end of 2007. Dobson markets itself under the brand name Cellular One. The network covered by Dobson includes Alaska, Arizona, Illinois, Maryland, Michigan, Minnesota, Missouri, New York, Ohio, Oklahoma, Pennsylvania & Wisconsin. The subscriber base of the rural wireless carrier is 1.7 million.