Sunday, October 28, 2018

Aviation sector under pressure despite promising outlook

New Delhi:  India’s aviation sector is predicted to become the third largest aviation market by 2024. However, the growing traffic is not resulting in growing fortune of aviation firm, with top players slipping into losses.
In the first 10 months (January to September) of 2018, passengers carried by domestic airlines stood at 1027.93 lakh, against 849.94 lakh during the same period in 2017, up by 20.94 per cent. But in the last two quarters, higher fuel prices and falling rupee value spoiled the party for the airlines, so much so that the existence of a major player, Jet Airways, is now in question.
The Mumbai-based carrier has grounded over a dozen of its planes and is struggling to pay salaries to its employees on time. Last checked, Jet Airways gave pink slips to 20 employees, including some senior executives. Likewise, Air India, the state-controlled airline, after a stale stake sale attempt, has got the government’s assurance of a revival package, but its chief Pradeep Singh Kharola recently said that the turnaround efforts have become more difficult with overall increase in operational expenditure and fierce competition.
28/10/19 Arshad Khan/New Indian Express

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