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Aviation sector looking to Union Budget for relief

 
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iah87
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Joined: 17 Apr 2007
Posts: 2383

PostPosted: Wed Jan 22, 2020 2:21 am    Post subject: Aviation sector looking to Union Budget for relief Reply with quote

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: 3103
Location: South of France

PostPosted: Sat Jan 25, 2020 10:09 pm    Post subject: Reply with quote

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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