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Boeing says Indian domestic air fares unsustainably low

 
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iah87
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Joined: 17 Apr 2007
Posts: 2566

PostPosted: Wed Dec 19, 2018 10:12 pm    Post subject: Boeing says Indian domestic air fares unsustainably low Reply with quote

https://finance.yahoo.com/news/boeing-expects-indian-carriers-order-070343487.html

Boeing is stating that Indian airfares in the domestic market are about 10 to 15% lower than breakeven due to intense competition.

Culprits are Boeing and Airbus which are hoping for big orders and of course Indigo which has ordered so many planes that it has no other place but keep piling and adding frequency to many routes that the margins become barely breakeven. Not to mention Spicejet too to some extent.
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Jaysit
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Joined: 19 Dec 2006
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PostPosted: Wed Dec 19, 2018 11:32 pm    Post subject: Re: Boeing says Indian domestic air fares unsustainably low Reply with quote

iah87 wrote:
https://finance.yahoo.com/news/boeing-expects-indian-carriers-order-070343487.html

Boeing is stating that Indian airfares in the domestic market are about 10 to 15% lower than breakeven due to intense competition.

Culprits are Boeing and Airbus which are hoping for big orders and of course Indigo which has ordered so many planes that it has no other place but keep piling and adding frequency to many routes that the margins become barely breakeven. Not to mention Spicejet too to some extent.


Duh. Of course they are. Add to that crippling fuel taxes, and you have a recipe for disaster.

Also, adding frequencies is a separate issue from profit margins on any flight. Boeing and Airbus have a vested interest in a thriving viable Indian aviation industry, not one that is crippled and destined for bankruptcy because of unsustainable fares. Should the latter happen, none of those aircraft will be delivered.

Jesus, think before you hit the keyboards.
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iah87
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Joined: 17 Apr 2007
Posts: 2566

PostPosted: Thu Dec 20, 2018 7:41 pm    Post subject: Re: Boeing says Indian domestic air fares unsustainably low Reply with quote

Jaysit wrote:
iah87 wrote:
https://finance.yahoo.com/news/boeing-expects-indian-carriers-order-070343487.html

Boeing is stating that Indian airfares in the domestic market are about 10 to 15% lower than breakeven due to intense competition.

Culprits are Boeing and Airbus which are hoping for big orders and of course Indigo which has ordered so many planes that it has no other place but keep piling and adding frequency to many routes that the margins become barely breakeven. Not to mention Spicejet too to some extent.


Duh. Of course they are. Add to that crippling fuel taxes, and you have a recipe for disaster.

Also, adding frequencies is a separate issue from profit margins on any flight. Boeing and Airbus have a vested interest in a thriving viable Indian aviation industry, not one that is crippled and destined for bankruptcy because of unsustainable fares. Should the latter happen, none of those aircraft will be delivered.

Jesus, think before you hit the keyboards.


Boeing is contradicting itself by saying that fares are too low and at the same time dealing with airlines for more orders. The fuel tax issue is separate and is already fixed, so the airlines know about that issue before ordering the planes.

"Jesus" - you should know that fuel taxes will never change in India and that is the reality.
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