Airlines to blame for their losses: Gopinath

Hubli: While the head honchos of the private airline industry are trying to arm-twist the Centre for a bailout, aviation entrepreneur G R Gopinath feels there is no need for it. However, he strongly advocated the need for a national aviation policy.
"There is no need for a bailout package for private airlines as they themselves are responsible for their losses, at least in part", Gopinath, who founded the country's first low-cost airline, said in Hubli on Saturday. He was here to inaugurate the Founder's Day celebrations at the Karnataka Chamber of Commerce and Industries.
"The airlines have themselves to blame for the state they are in. They did not follow a strategy that would lead to profits. India is a country where only 2% of the population travels by air. The airline industry concentrated all its efforts on them. It did nothing to attract the 98% population that uses road and rail travel. This was an unviable business strategy. But the industry followed it. That is the reason that led to the losses", he said.
"Last year, the airline operators got together and fixed the price of airline tickets. If this was done in any other country, it would be considered a crime. In fact, they would be jailed for the crime. But it was allowed in this country as we have no aviation policy. What India needs is an aviation policy and not a bailout package for the airline industry, he said.
02/08/09 Times of India

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Categories: Indian Aviation- In General Aug 2009