Mumbai: Slowing demand and rise in import costs due to rupee depreciation are impacting the expansion plans of air charter companies.
“It’s a tough time for the aviation industry, especially in case of import of aircraft because you will end up spending more as the rupee-dollar conversion is 15% more now. People will refrain from direct cash deals to import an aircraft,” said Rajeev Wadhwa, chairman & CEO, Baron Luxury and Lifestyles.
The company currently has a fleet of nine aircraft.
“There was tolerance up to Rs 53 a dollar, but now with the currency at 60, it has definitely put many acquisitions on hold. The people are in a wait-and-watch mode because they know that this is not going to be sustainable,” he said.
01/07/13 Yuga Chaudhari/Daily News & Analysis
To Read the News in full at Source, Click the Headline
“It’s a tough time for the aviation industry, especially in case of import of aircraft because you will end up spending more as the rupee-dollar conversion is 15% more now. People will refrain from direct cash deals to import an aircraft,” said Rajeev Wadhwa, chairman & CEO, Baron Luxury and Lifestyles.
The company currently has a fleet of nine aircraft.
“There was tolerance up to Rs 53 a dollar, but now with the currency at 60, it has definitely put many acquisitions on hold. The people are in a wait-and-watch mode because they know that this is not going to be sustainable,” he said.
01/07/13 Yuga Chaudhari/Daily News & Analysis
