India will have six new airlines before the financial year ends apart from the existing airlines that continue to report losses every consecutive quarter. However, any bloodbath in this space is still some time away believes Ajay Singh, Former Director, SpiceJet . Kapil Kaul, chief executive officer- India Subcontinent, Centre for Asia-Pacific Aviation adds that the full impact of the latest entrant- Vistara will be felt in FY16. “The market continues to be very challenging for the industry. While there are some early signs of easing like the possibility of lower ATF prices and the rupee stability, these are only temporary,” adds Kaul. Where are carriers going wrong Singh says getting the right business model for an airline is of utmost importance now as it is getting difficult to run an airline successfully. “Fly fewer destinations but fly with full capacity and fly on time. Airlines need to learn how to attach costs,” he adds. Singh, however, also has a suggestion for the government- treat aviation as more than mere luxury and take a holistic approach towards the industry.
19/08/14 MoneyControl.com
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19/08/14 MoneyControl.com
