Friday, October 26, 2007

Worries, hopes at the flight deck

The chief executives of Indian airlines are worried that infrastructure constraints, especially at airports, will crimp India’s aviation boom. This is among the findings of a CEO poll conducted by the Federation of Indian Airlines, an industry lobby group. Top representatives of local carriers also said they are concerned about current regulatory guidelines and outdated rules.
Maintaining the expectations of an average 30% growth in passengers, the respondents hoped that infrastructure constraints at airports would be addressed in the next three-five years. “Infrastructure constraints at key airports are leading to additional operating costs, such as fuel, maintenance and delayed flights. Due to infrastructure bottlenecks, planes are having 5-10% additional flying time. The impact of this is approximately $80 million (Rs316 crore) a year,” said Saroj K. Datta, executive director of Jet Airways India Ltd.
According to industry estimates, Indian airlines made combined losses of $500 million in 2006-07.
25/10/07 P.R. Sanjai/Livemint
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