While India has experienced 46 consecutive months of double-digit passenger growth, a protracted fare war has driven ticket prices so low that most airlines can hardly cover costs.
Facing competition from airlines like IndiGo, GoAir, and SpiceJet, the airline is facing the probability of failing to repay its obligations next year.
The civil aviation ministry could have recognised the enormity of the Air India crash and prepared the AAIB and its investigating team for its sensitivities.
Mini deal will likely see no cut in 10% baseline tariff on Indian exports announced by Trump on 2 April, it is learnt, but additional 26% tariffs are set to be reduced.
India-Russia JV is also racing to deliver 7,000 more AK-203 assault rifles by 15 Aug. These are currently being made with 50% indigenisation and this will surge to 100% by 31 December.
Public, loud, upfront, filled with impropriety and high praise sometimes laced with insults. This is what we call Trumplomacy. But the larger objective is the same: American supremacy.
Giving ATF on credit or cutting some slack by AAI is a very temporary, partial relief. That is also how KFA started slithering to the bottom. Most costs – barring staff salaries and airport charges – are in USD, the revenues almost all in INR, so currency depreciation is a savage blow. 2. Perhaps Minister for Civil Aviation – who also “ owns “ Air India in a sense – could convene emergency meetings with major domestic airlines and try to work out how best the government can support and aid the industry at a time of distress. First on the agenda should be a gentlemen’s agreement – with the full knowledge of the CCI – that airlines will stop playing games with pricing of tickets. Never mind what it does to one player’s market share or the rate of growth of the industry, passengers must pay the true cost of air travel. That includes a recent initiative by the government to boost regional air connectivity by capping fares and creating another maze of cross subsidies. Let the industry grow at a pace where profitability and affordability can be harmonised. 3. There are similar problems in other industries, telecom for example. Agreed it is not the government’s job to tell businessmen how to run their companies profitably, but if an entire industry is tottering, placing at risk jobs, taxes and amounts borrowed from banks, the government can and should play the role of a mentor.
Giving ATF on credit or cutting some slack by AAI is a very temporary, partial relief. That is also how KFA started slithering to the bottom. Most costs – barring staff salaries and airport charges – are in USD, the revenues almost all in INR, so currency depreciation is a savage blow. 2. Perhaps Minister for Civil Aviation – who also “ owns “ Air India in a sense – could convene emergency meetings with major domestic airlines and try to work out how best the government can support and aid the industry at a time of distress. First on the agenda should be a gentlemen’s agreement – with the full knowledge of the CCI – that airlines will stop playing games with pricing of tickets. Never mind what it does to one player’s market share or the rate of growth of the industry, passengers must pay the true cost of air travel. That includes a recent initiative by the government to boost regional air connectivity by capping fares and creating another maze of cross subsidies. Let the industry grow at a pace where profitability and affordability can be harmonised. 3. There are similar problems in other industries, telecom for example. Agreed it is not the government’s job to tell businessmen how to run their companies profitably, but if an entire industry is tottering, placing at risk jobs, taxes and amounts borrowed from banks, the government can and should play the role of a mentor.