New Delhi: Faced with a daunting task of sustaining the cash-strapped national carrier Air India, Ashwani Lohani, its Chairman cum Managing Director, believes that the company still has the potential to be turned around into a profit-making body with some transformational reforms. Speaking at the second edition of the Build India Conclave organised by ITV Network, Lohani said the state-owned airline faced stiff challenge from the private sector, yet it has to be sustained till it is sold out.
“It has to survive till it is sold out…currently the Air India is under Rs 20,000 crore debt but still it can be made into a profit-making body. At present we have some constraints but there is a tremendous potential for improvement,” Lohani said.
He said the drop in air fares was the biggest challenge that the aviation sector faced at the moment. Noting that while the demand and supply in the aviation sector was a constant rise, the drop in ticket prices pose a grave challenge for the airline companies. “The aviation sector faces the highest competition in ticketing but at the same time the business is low on margin. The prices of tickets on several routes have only reduced in the last two decades and hence making it difficult for airlines to sustain,” he said.
Lohani said with the growth of middle class, there has been a tremendous rise in demand in the aviation sector as people tend to shift from road and rail transport to the air travel. “With the UDAN scheme, new airports are coming up in tier-2 and tier-3 cities. The number of active airports is going up,” he said.
21/12/19 Rakesh Ranjan/Sunday Guardian Live
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“It has to survive till it is sold out…currently the Air India is under Rs 20,000 crore debt but still it can be made into a profit-making body. At present we have some constraints but there is a tremendous potential for improvement,” Lohani said.
He said the drop in air fares was the biggest challenge that the aviation sector faced at the moment. Noting that while the demand and supply in the aviation sector was a constant rise, the drop in ticket prices pose a grave challenge for the airline companies. “The aviation sector faces the highest competition in ticketing but at the same time the business is low on margin. The prices of tickets on several routes have only reduced in the last two decades and hence making it difficult for airlines to sustain,” he said.
Lohani said with the growth of middle class, there has been a tremendous rise in demand in the aviation sector as people tend to shift from road and rail transport to the air travel. “With the UDAN scheme, new airports are coming up in tier-2 and tier-3 cities. The number of active airports is going up,” he said.
21/12/19 Rakesh Ranjan/Sunday Guardian Live
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