Sunday, December 16, 2018

Pricing policy that makes airlines lose money is a problem: IATA chief

Geneva: Competitive air ticket prices are a strong stimulator for demand in India but a pricing policy that makes airlines lose too much money is a problem, according to IATA chief Alexandre de Juniac.

India is the world’s fastest growing domestic aviation market and has registered double-digit passenger growth for 50 straight months in October. However, the local carriers are grappling with financial headwinds due to multiple factors, including inability to raise fares amid intense competition and increased fuel prices.

While noting that he is optimistic about Indian aviation market, de Juniac also flagged concerns about infrastructure, taxation structure and high costs.

The International Airport Transport Association (IATA) is a grouping of around 290 airlines, including Air India, Jet Airways and Vistara.

“In terms of working of the market, if you are forced to have a pricing policy that makes you lose too much money, then it is a problem at the end of the day,” de Juniac told PTI.

His remarks came in response to queries about the Indian market and whether there could be a saturation point where the local airlines might be forced to hike fares.
16/12/18 PTI/Business Line
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