Iceland's volcanic ash hit India's exports as well

Even as India's airlines were struggling to get back to normalcy after weathering the global recession, the volcanic ash from Iceland has given the industry another jolt while also affecting the country's exports.
Just a few days before ash spewing out of the Icelandic volcano crippled Europe's airports, Civil Aviation Minister Praful Patel had said that Air India has now turned the corner. His comments about the national carrier may have been premature but he was certainly reflecting the general upbeat mood of the civil aviation industry in recent months. Traffic has been picking up and the bottomlines of companies are not looking as red as in the past.
In fact, the sudden shutdown of European airports last week has hit Indian exporters harder than the aviation industry itself. Some export associations peg the losses at as high as Rs.1,000 crore ($220 million) in this period while others say exports of $1 billion of high-end merchandise to the US and Europe may face delays or cancellations.
Higher freight rates now being charged by the airlines that have resumed flights are going to add on to costs and adversely affect competitiveness of Indian products in major markets of the developed world.
25/04/10 IANS/Economic Times

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Categories: Foreign Apr 2010, Indian Aviation- In General Apr 2010