Why the low prices Udan Cafe at airports are the match light to the socialist crumbling of economy .
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I recently saw the speech by AAP MP , Raghav Chaddha about the overpriced cafes and eateries at the airports and need for low priced food for fliers. I laughed at his proposal , given the fact that he is a CA and I assumed that he understood economy and finances.
Then to my horror , this was actually implemented and we saw many Udaan Cafe at airports with low priced food . As an MBA I was aghast at this atrocious move .
Now let me explain how this negatively affects the economy .
Airports are mostly built by taking loans ,. 3000 crore ,5000 crore etc. and loans have to paid off .
So if you have let’s assume 20 eateries at the airport , they all are charged hefty amounts (Rs 2 lakhs per month ) , so we get a monthly rental of Rs. 40 lakh which is paid off towards the loan repayment . Since they are charged high rentals , they charge high price for the food to make a profit .
if we get a cheap-priced food outlet , 70% of the fliers will eat there and eventually, most eateries will go in a loss and shut shop resulting in lower rental income and less rental income available for loan repayment. so inorder to fill the deficit , the government will have divert funds from elsewhere to repay that loss from now shut eateries .
So some other work which could have been done by that extra 30 lakh per month , like roads, bridges etc , will now be delayed indefinitely due to lack of funds .
This was the most absurd move done by government to appease rabble rouser Raghav Chaddha .
The government /taxpayer should not go bust or lose income due to socialist wet dreams of low IQ people like Raghav chaddha.
WORST decision and should be evoked immediately .
Government should not bend down to such demands from anyone who has no understanding of finances , income and cash flow.
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