Mumbai: Indian carriers will oppose many of the new rules proposed by the civil aviation ministry for the benefit of air passengers, including relaxation of cancellation charges and a significant increase in compensation for lost and damaged baggage.
“The government has to decide whether it wants to treat aviation as a luxury sector or wants to take it to the common man. Airfares in India are already at some of the lowest levels in the world. Yields are badly hit. At this level, such rules will have a massive impact,” said a top executive at a full-service airline.
The proposed rules will have a major impact on ancillary revenue, airline executives said. At IndiGo, cancellation charges are 5% of ancillary revenue. The changes have been planned at a time when profitability at airlines is under pressure from rising fuel prices and competition.
Fares in April-May, the start of the peak summer travel season, have declined as much as 30% from a year earlier. IndiGo posted a 73% drop in net profit in the January-March quarter while Jet AirwaysNSE 3.40 % reported a quarterly and annual loss. Senior executives at both airlines spoke of ongoing pressure on revenue from ticket sales.
25/05/18 Economic Times
To Read the News in full at Source, Click the Headline
“The government has to decide whether it wants to treat aviation as a luxury sector or wants to take it to the common man. Airfares in India are already at some of the lowest levels in the world. Yields are badly hit. At this level, such rules will have a massive impact,” said a top executive at a full-service airline.
The proposed rules will have a major impact on ancillary revenue, airline executives said. At IndiGo, cancellation charges are 5% of ancillary revenue. The changes have been planned at a time when profitability at airlines is under pressure from rising fuel prices and competition.
Fares in April-May, the start of the peak summer travel season, have declined as much as 30% from a year earlier. IndiGo posted a 73% drop in net profit in the January-March quarter while Jet AirwaysNSE 3.40 % reported a quarterly and annual loss. Senior executives at both airlines spoke of ongoing pressure on revenue from ticket sales.
25/05/18 Economic Times
0 comments:
Post a Comment