Geneva: A top executive at IATA has said that the Indian Government should not interfere in the domestic airline industry; instead, it should allow market forces to determine the success or failure of the airlines.
“India is a highly regulated market. The Government in every market sets the rules of the game to provide sufficient infrastructure, but it should see to it that regulatory and infrastructure costs are at a low level. But it should not interfere with the market. The success and failure of the airlines is up to the market and the consumers,” IATA’s chief economist, Brian Pearce told BusinessLine.
Pearce said while airport privatisation in India has generated good quality investments, it has also generated in high-service charges and is holding back air travel.
He added that Indigo is one among 30 airlines worldwide which has been responsible for the improvement in the aggregate industry-level profitability. “Ranking airlines by economic profit shows that a group of around 30 airlines has been responsible for the improvement over the past 30 years. The top-30 airline group has generated sufficient free cash flow to pay down debt and reduce their debt-to-earnings to more or less investment-grade levels. This provides stability and financial resilience if difficult business conditions emerge.”
11/12/19 K Giriprakash/Business Line
To Read the News in full at Source, Click the Headline
“India is a highly regulated market. The Government in every market sets the rules of the game to provide sufficient infrastructure, but it should see to it that regulatory and infrastructure costs are at a low level. But it should not interfere with the market. The success and failure of the airlines is up to the market and the consumers,” IATA’s chief economist, Brian Pearce told BusinessLine.
Pearce said while airport privatisation in India has generated good quality investments, it has also generated in high-service charges and is holding back air travel.
He added that Indigo is one among 30 airlines worldwide which has been responsible for the improvement in the aggregate industry-level profitability. “Ranking airlines by economic profit shows that a group of around 30 airlines has been responsible for the improvement over the past 30 years. The top-30 airline group has generated sufficient free cash flow to pay down debt and reduce their debt-to-earnings to more or less investment-grade levels. This provides stability and financial resilience if difficult business conditions emerge.”
11/12/19 K Giriprakash/Business Line
0 comments:
Post a Comment