Toulouse: Indian airlines should become positively competitive to make the country’s aviation market sustainable in the long term, a top Airbus executive has said while responding to the recent grounding of Jet Airways.
“India market is a very competitive one and I think the business model is a difficult one,” said Guillaume Faury, chief executive officer, Airbus. “Only recommendation is to always look at your competitors who manage their business better than the others. It is a competition and not everybody can be a winner, but things can change,” he told reporters, replying to a question seeking advice for Indian carriers in the light of Jet’s troubles.
Jet, once the country’s biggest private airline, suspended all its operations last month due to financial mess, despite air passenger numbers in India registering the fastest growth in the world in the past four years.
The demise of Jet has raised questions on the sustainable of the country’s aviation market.
Several experts have attributed Jet’s fall to cut-throat competition in fares.
Low-cost carriers such as IndiGo and full-service carriers like jet Airways — with much higher cost of operations — have been selling economy class seats at same fares to attract price-sensitive Indian flyers.
26/05/19 Mihir Mishra/Economic Times
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“India market is a very competitive one and I think the business model is a difficult one,” said Guillaume Faury, chief executive officer, Airbus. “Only recommendation is to always look at your competitors who manage their business better than the others. It is a competition and not everybody can be a winner, but things can change,” he told reporters, replying to a question seeking advice for Indian carriers in the light of Jet’s troubles.
Jet, once the country’s biggest private airline, suspended all its operations last month due to financial mess, despite air passenger numbers in India registering the fastest growth in the world in the past four years.
The demise of Jet has raised questions on the sustainable of the country’s aviation market.
Several experts have attributed Jet’s fall to cut-throat competition in fares.
Low-cost carriers such as IndiGo and full-service carriers like jet Airways — with much higher cost of operations — have been selling economy class seats at same fares to attract price-sensitive Indian flyers.
26/05/19 Mihir Mishra/Economic Times
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