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iah87
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Joined: 17 Apr 2007
Posts: 2566
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 Posted: Wed Jan 22, 2020 2:21 am Post subject: Aviation sector looking to Union Budget for relief |
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https://qz.com/india/1787752/can-nirmala-sitharaman-budget-2020-let-indian-aviation-fly-again/?utm_source=YPL&yptr=yahoo
Read the article. While the complaints against high ATF rates and not enough infrastructure at the airports are legit, the budget carriers uncontrolled expansion with loss making prices for air travel is part of the cause, especially Indigo and to some extent Spice Jet. It is one thing to introduce new flights on a new sector, but piling on the same sector with several flights ultimately leads to losses.
Budget carriers should quit competing with Indian Railway AC 2 tier fares and should look at pricing which will produce a small profit. |
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The_Goat
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Joined: 03 Mar 2007
Posts: 3260
Location: South of France
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| Posted: Sat Jan 25, 2020 10:09 pm Post subject: |
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Quite right. It's ridiculous how cheap low cost flights are in India, compared to to the US and EU. The input costs in India aren't that much lower either. Makes me wonder how the likes of Indigo are actually reporting profits.
No point in blaming the government when the low cost operators are busy destroying the industry with the unsustainable prices.
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I don't know which is the more pampered bunch : AI's widebodies (the aunties) or Jet's widebodies (the planes).
-Jasepl |
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iah87
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