Tuesday, November 06, 2012

‘Airline costs are 40% higher in India’

Mumbai: Air Arabia, one of the largest low-cost carriers in the Middle East, operates in 13 cities in India. Adel Ali, Group CEO, Air Arabia, in a media interaction, spoke about the challenges and potential of the Indian market.
How much does the Indian market contribute to Air Arabia in terms of passengers and revenues?
It is 10-12% for both passengers and revenues.
How has growth been so far in India?
We had good year-on-year growth until about 2010. But in the last two years we have not grown at all because we have used all our allocated capacity under bilateral and the seat factors have been high.
Is there a room for expansion if you have used the allocated capacity?
I think there is a room for expansion. For governments, it is a routine thing that they need to do every year or every two years. And one remains hopeful that both parties are sensible and they recognise the potential. It will be a gradual process. In a business you always want to grow. We aim for more because there is a demand for it and I am optimistic that if the talks happen, things will be positive.
06/11/12 Yuga Chaudhari/Daily News & Analysis
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