Oversized & overrated!!!

Think of the aircraft manufacturing giant Boeing, & you perhaps question the very ‘bulky’ American’s audacity when it deafeningly defies gravity. But there itself you are caught on the wrong foot, for bulky it is when it comes to giving ultra-rich cash returns (with a blinding $81.9 billion in m-cap on the NYSE) but not when it comes to aircraft designs! Don’t believe us? Well look at its July 8, 2007 rollout – the mid-sized B787 ‘Dreamliner’ by lieu of which this American showed precisely why it felt that ‘big isn’t beautiful’, logically!

Well, nothing to take away from the $10 billion bull-headed super-jumbo A380 manufacturing strategy of Airbus, but the new delivery market for largesized aircraft s over the next 20 years (including the A380s) according to a 2026 forecast by CAPA will stand at just $270 billion, representing just a pathetic 9.6% of global market till 2026 (which stands at a dazzling $2.8 trillion)! So all in all, Airbus’s latest expensive hobby (which belongs to this segment) is meant to cater to just 9.6% of the total market demand for new aircraft s over the next two decades. On the contrary, Boeing’s latest, the 280-seater B787 falls in the twin-aisle category – the most lucrative segment worth a most scintillating $1.27 trillion (accounting for 45.4% of total market).

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Source: IIPM Editorial, 2008

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

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The National Environment Policy (NEP) Draft Policy 2004, cleared by the Cabinet aft er two years, though propagated as India’s commitment towards a positive contribution to international environmental efforts, actually is a fl aw-filled and near moribund attempt.

The crux of NEP revolves around conservation, livelihood security, integration of environment and social development. But a strange Polluter-Pays-Principle (PPP) approach used extensively in this policy has been framed on the hypothesis that altering the price of the polluting commodity (through pollutant tax) would lead to a reduction in consumption of polluting commodity, thus in a reduction in their production. Sadly, studies reveal that these polluting commodities are primarily exported and are consumed by foreign firms which are relatively highly price inelastic, that is, their demand will not get affected by the proposed pollutant tax.

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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative