The shutting down of the full-service airline in April may have provided other airlines the opportunity they needed to finally improve margins
Two years down the line, the industry is in the doldrums. Jet Airways has shut down, Air India couldn’t find any buyers when the government sought to sell it, IndiGo is facing disputes among its promoters, and the government’s ambitious regional connectivity scheme is yet to gather momentum. All this is in addition to the high costs and lower yields that have plagued the industry for decades.
The biggest shock came in May, when data showed that the overall domestic passenger traffic between January and April 2019 grew at only 2.5 percent, significantly lower than the 24.6 percent growth in the corresponding period last year. Between this January and March, India’s airlines carried a total of 464.47 lakh passengers compared to 453.03 lakh in the corresponding period last year.“What is happening in the aviation sector is a man-made mess,” says Jitendra Bhargava, a former executive director of Air India. “We can’t have a situation where an airline goes bust every four or five years. There has to be rationalisation in terms of fares to make the business more viable. It’s often difficult to raise fares, but that’s the only sustainable model.”
Bu hikaye Forbes India dergisinin June 21, 2019 sayısından alınmıştır.
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Bu hikaye Forbes India dergisinin June 21, 2019 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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