Domestic airlines will have to improve efficiencies'

India is expected to post the largest aviation sector losses (outside of the United States) this year at $1.5 billion on rising fuel bills and slowing traffic growth.
From 33% increase in 2007, traffic growth slowed to 7.5% in between January and June this year and has become negative subsequently.
No wonder then that the International Air Transport Association (IATA), which represents 230 airlines or 93% of scheduled international air traffic, has prescribed a bitter medicine to cure the ills. Director General and CEO Giovanni Bisignani was blunt when he said on Wednesday that instead of continuing to focus on grabbing market share, Indian airlines need to improve efficiencies to even remain in business.
"The next months are critical. The industry is sick. I had to suspend 25 airlines from our settlement systems because they went bust.
Many of these were because they were fighting to grow traffic instead of profit. This is not the time to grab market share. Action on external issues is also required to bring the industry back to health," he said.
Bisignani used some tough words against the government too, pointing out the absence of any action on making aviation turbine fuel (ATF) cheaper despite several representations by the industry.
25/09/08 Sindhu Bhattacharya/DNA Money/Sify

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Categories: Indian Aviation- In General Sep 2008