If govt doesn't help, airlines will have to wind up: Jet

Private airlines have blinked first, but they are not happy about it. Naresh Goyal, Chairman, Jet Airways, of one of India's biggest airline, warns that if the government does not step in with a helping hand, airlines will have to wind up operations. CNBC-TV18’s Swati Khandelwal reports.
Private airlines have given in to government pressure and called off the strike proposed for August 18. But airlines are adamant that this decision does not belittle the industry's problems. Naresh Goyal, the Chairman of Jet Airways, says the issue of excess capacity coupled with high aviation turbine fuel (ATF) prices and airport charges, is making it unviable to sustain operations.
“Jet Airways took birth because of competition. We welcome competition but not at the cost of excess capacity which is hurting Indian carriers. This is giving way to irrational pricing. Most airlines are selling tickets below cost. Also, low pricing and navigation, landing and ATF charges has compounded the problems of aviation,” Goyal said.
Airport charges, Goyal says, have gone by nearly 80% over the last 12 months, adding a USD 250 million burden on the industry, which is no laughing matter.
“We have the highest airport charges in the world. The situation is really bad and we will have to all close down,” Goyal added.
04/08/09 Swati Khandelwal/CNBC-TV18/Moneycontrol.com

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Categories: Jet Airways Aug 2009