Monday, July 4, 2022

IATA official believes is it difficult for Indian airlines to be profitable

“There are a lot of issues that pose challenges to profitability like fare caps and high taxes on aviation turbine fuel (ATF).”
— Philip Goh, Regional Vice President for Asia Pacific of International Air Transport Association (IATA)

PRAVASISAMWAD.COM

 Philip Goh, Regional Vice President for Asia Pacific of International Air Transport Association (IATA) recently pointed out that it was not easy for an airline in India to be profitable. There were a lot of issues that posed challenges to profitability like fare caps and high taxes on aviation turbine fuel (ATF). Goh was speaking at a press conference held at the the 78th annual general meeting of the global airlines body, reported PTI.

Speaking about profitability, Goh said, “Both (Vistara and Air India) are full- service carriers. Vistara is still quite small and although they have been in business for 5-6 years, they are still loss making. It is not easy to turn a profit in India. A lot of issues to overcome.”

Talking about India, Goh said that pricing should to be left to airlines and should not be governed. Taxation – on fuel and other things – was always an issue for airlines. Any measures that were taken by the government that increase costs for airlines was bad for the economics of the aviation sector

Asked if Vistara and Air India should be merged by the Tata Group, Goh said he was sure that discussion had to be happening between the Tata Group and Singapore Airlines on the merger of Air India and Vistara. “It does make sense to look at synergies between two similar full-service carriers,” he told reporters.

Talking about India, Goh said that pricing should to be left to airlines and should not be governed. Taxation – on fuel and other things – was always an issue for airlines. Any measures that were taken by the government that increase costs for airlines was bad for the economics of the aviation sector, he said.

*******************************************************

Readers

These are extraordinary times. All of us have to rely on high-impact, trustworthy journalism. And this is especially true of the Indian Diaspora. Members of the Indian community overseas cannot be fed with inaccurate news.

Pravasi Samwad is a venture that has no shareholders. It is the result of an impassioned initiative of a handful of Indian journalists spread around the world.  We have taken the small step forward with the pledge to provide news with accuracy, free from political and commercial influence. Our aim is to keep you, our readers, informed about developments at ‘home’ and across the world that affect you.

Please help us to keep our journalism independent and free.

In these difficult times, to run a news website requires finances. While every contribution, big or small, will makes a difference, we request our readers to put us in touch with advertisers worldwide. It will be a great help.

For more information: pravasisamwad00@gmail.com

Gyanendra
(Gyanendra has been teaching and writing for the last 15 years. His passion for teaching keeps him engaged. He keeps a keen interest in Sports and Current Affairs.)

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

EDITOR'S CHOICE