As of now, no airline companies from India have a positive balance sheet due to increased competition, affordable ticketing strategy and rising price of aviation turbine fuel or ATF.
Indian aviation sector File Photo |Photo Credit: BCCL New Delhi: Even as India’s economic growth continues to scale new heights, there are a number of macroeconomic and sectoral predicaments that have rattled the steady growth index. While banking and telecom remain the two most vulnerable sectors in the country, the airline industry seems to be staring at a similar fate. On Monday, SpiceJet chief Ajay Singh finally said: “The depreciation of the rupee has been a big issue... many of our costs are denominated in dollars. Of course, there is great stress in the sector.” This is one of the first statements that have emerged regarding the internal setbacks in the aviation industry.
While he mentioned that airlines around the world are also suffering due to global hindrances, the fact that Indian carriers work on a low-cost budget model has added to the woes. The development is alarming considering that the country’s aviation sector was set to become the third-largest in the world by 2025.
28/08/18 Koustav Das/ETNowNews.com
To Read the News in full at Source, Click the Headline
Indian aviation sector File Photo |Photo Credit: BCCL New Delhi: Even as India’s economic growth continues to scale new heights, there are a number of macroeconomic and sectoral predicaments that have rattled the steady growth index. While banking and telecom remain the two most vulnerable sectors in the country, the airline industry seems to be staring at a similar fate. On Monday, SpiceJet chief Ajay Singh finally said: “The depreciation of the rupee has been a big issue... many of our costs are denominated in dollars. Of course, there is great stress in the sector.” This is one of the first statements that have emerged regarding the internal setbacks in the aviation industry.
While he mentioned that airlines around the world are also suffering due to global hindrances, the fact that Indian carriers work on a low-cost budget model has added to the woes. The development is alarming considering that the country’s aviation sector was set to become the third-largest in the world by 2025.
28/08/18 Koustav Das/ETNowNews.com
0 comments:
Post a Comment