Thursday, September 07, 2006

A full service carrier may acquire an LCC shortly: CAPA

The Centre for Asia Pacific Aviation has warned that increasing pressure on airline bottom lines, led by higher human resources costs pose a major threat to market development, just a week after Boeing upgraded its long-term aircraft sales forecast for India by 75%.
According to Kapil Kaul, the Centre’s CEO, Indian Subcontinent and Middle East, the pressures from massive wages and overtime increases, fuel and constrained airport/ATM infrastructure will provoke significant structural changes in the sector in the next 12 months.
“Some new partnerships between airlines must emerge in the months ahead, to address overcapacity, skills and airport capacity shortages - and to stop the bleeding. It is quite possible that a full service carrier may acquire an LCC within the next 12 months.”
07/09/06, Thailand
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