Stop bleeding Indian carriers!
While majority of Indian airlines are facing financial turbulence, especially in domestic operations, it is high time to adopt some pragmatic antidotes to fly high. Dinesh Keskar, Vice President - Sales, Asia-Pacific & India, Boeing Commercial Airplanes s
In an exclusive interview with , Keskar strongly advocated for adequate corrections, which should be from within the airline community in India. Keskar said, “A viable price mechanism and a rational capacity deployment should be the two-pronged strategy that the airlines must adopt to stop bleeding.”
According to him, in view of the escalating aviation fuel price hike with additional tax burden on the airlines industry in India, there is no other affective alternative to remain in the business. On the other hand, there is a mismatch between demand and supply. Presently supply (capacity) is more than demand. As a result, cost remains on the higher side as compared to revenue earned. He, however, maintained that decrease of capacity is already happening, though not deliberately. For instance, one of the major airlines has grounded its flights and some have squeezed their services, because of dwindling revenues on certain routes. try’s economy to imagine that the aviation industry is crawling for its survival. “Yes, there would be less traffic in air. However, it is always welcome to witness the industry,