New Delhi: The airline industry is booming but whether a particular airline is doing well depends on industry dynamics and the airlines’ strategy, Civil Aviation Minister Jayant Sinha said.
Speaking at ThePrint’s Off The Cuff event Friday, Sinha also said that rising fuel prices will not affect the sector. “Most of the aviation turbine fuel (ATF) is domestic and very less of it is imported. Import duty will not make a difference to ATF prices as far as India is concerned. The airline business overall is booming,” he said.
On some private airlines being in crisis, Sinha said it was a result of the industry’s dynamics, wherein higher input costs were not being passed on to consumers.
“What is happening is that we have a lot of competition in the airline industry and therefore, an increase in input prices is not necessarily flowing through as higher prices to consumers,” Sinha said. “That’s because of various comparative strategies, airlines are following. One would expect that the prices to consumers would rise but that has not been the case because of competitive actions that airlines have taken”.
The aviation minister further spoke on the efforts that the ministry, he said, was putting in to strengthen Air India and to make it more competitive, vibrant and a global airline.
“The good news is that in the last three to four years when you look at the operating parameters of Air India or its operating benchmarks, they have improved dramatically because of all the actions we have undertaken and have actually reached the level of most of its peers,” Sinha said. “So, in terms of operating benchmarks, they are doing fine”.
07/10/18 Ifrah Mufti/Print
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Speaking at ThePrint’s Off The Cuff event Friday, Sinha also said that rising fuel prices will not affect the sector. “Most of the aviation turbine fuel (ATF) is domestic and very less of it is imported. Import duty will not make a difference to ATF prices as far as India is concerned. The airline business overall is booming,” he said.
On some private airlines being in crisis, Sinha said it was a result of the industry’s dynamics, wherein higher input costs were not being passed on to consumers.
“What is happening is that we have a lot of competition in the airline industry and therefore, an increase in input prices is not necessarily flowing through as higher prices to consumers,” Sinha said. “That’s because of various comparative strategies, airlines are following. One would expect that the prices to consumers would rise but that has not been the case because of competitive actions that airlines have taken”.
The aviation minister further spoke on the efforts that the ministry, he said, was putting in to strengthen Air India and to make it more competitive, vibrant and a global airline.
“The good news is that in the last three to four years when you look at the operating parameters of Air India or its operating benchmarks, they have improved dramatically because of all the actions we have undertaken and have actually reached the level of most of its peers,” Sinha said. “So, in terms of operating benchmarks, they are doing fine”.
07/10/18 Ifrah Mufti/Print
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