Druk Air is without doubt a state-owned enterprise with a commercial orientation in the way it operates. However, as I have demonstrated in my past article, it is sufficiently clear that the entity was established to pursue non-financial objectives - and not as an enterprise of profit. Not all enterprises that the state creates are profit-centric. In 99% of the cases, they are service oriented - they are either required to engage in areas that are sensitive, or they are required to perform a service that no commercial entities are willing to venture into.
A case in point is the Food Corporation of Bhutan (FCB) - another state-owned enterprise of the RGoB. This organization has a different mandate - it is not expected to make profit for the state. Its existence is solely for the delivery of essential foods to remote and underserved locations where enterprises of profit will not venture into. Through government subsidies, the FCB is expected to ensure food security - to deliver essential foods at affordable prices. Try and imagine FCB trying to make a profit!
Similarly, fighting a war is not the purpose behind the establishment of Bhutan’s RBA. It was created to make a statement. Royal Bhutan Army cannot be considered a war-like apparatus - it serves a national objective.
So, do airlines serve national objectives? They do - and in a variety of ways. Countries around the world have used their national flag carriers for a variety of reasons - some even for espionage, as the following will demonstrate!
Formed in 1924, Britain’s erstwhile Imperial Airways was specifically created to provide air links between Britain and its far-flung Empire. No profit motives here.
KLM followed suit - to provide air links to the Dutch East Indies. The Belgian Airlines - SABENA serviced the Belgian Congo. Air France’s predecessor - Air Union was floated to fly to French colonies in West Africa. Profit making was furthest from the minds of these governments.
The Malaysian government considered the Malaysia Airlines (MAS), “an essential instrument in the nation-building process”. Consequently, the carrier’s primary focus was in servicing domestic routes, rather than international ones. The reason was that Malaysian government’s focus was in integrating different regions as one nation - national integration. Profit wasn’t in its scheme of things.
All these airlines were established not as institution of profit - but as instruments aimed solely at providing control and prestige, and national integration. But ofcourse, some were also created as state apparatus for espionage.
During the Cold War era, the US government used the flight attendants of the defunct PAN AM – its unofficial flag carrier – to perform espionage duties.
Mossad regularly used the El Al, Israel’s national flag carrier for the same purpose. KGB agents infiltrated the state-owned airline Aeroflot to carry out intelligence and counter-intelligence activities. Even the South African Airways was used by the Bureau of State Security for espionage work.
Whether for espionage or for connectivity, national flag carriers were created solely to serve a national interest. Druk Air cannot be an exception - infact our national flag carrier has every good reason to remain a service apparatus in the service of the nation - because of all the airlines named here - Druk Air is the only airline that CANNOT operate as an entity of profit. It is impossible!! Unless it does so at the cost of someone else.
Unless it does so at the cost of our national interest.
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