Domestic airlines have reported a 7-10 per cent drop in overall sales after the governmentĆās demonetisation move, according to a few news reports. Many travellers planning to travel during the peak winter season have apparently decided to postpone their travel plans.
Tag: airline industry
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Finance Ministry comes to the rescue of Indian airlines
The Finance Ministry may come to the rescue of IndiaĆĀ“s ailing airline industry. Noting that airlines are among the biggest loss-making entities in aviation sector here, Minister of State for Finance Jayant Sinha will have a meeting with all carriers to discuss their woes.
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Inducting new aircraft got easier in India
The Union Civil Aviation Ministry has disbanded the Aircraft Acquisition Committee as it was under the pressure from the airline industry and in the face of criticism about delays in inducting new aircraft. The six-member AAC, headed by the Additional Secretary in the Ministry, was vested with the power of clearing aircraft purchases for existing airlines as well as deciding on proposals for those wanting to enter the domestic industry.
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Enabling regulations may save the day
The economics of the airline industry has always been a concern for stake holders. Deep N Mukherjee and Ashoo Mishra explore the various challenges involved in this sector. The airline industry is a sector where reputation, skill and luck do not play a major role. A case in point is Warren Buffet who lost heavily in his investment in US Airways. The challenges for the Indian aviation industry increase further on the back of regulationdriven cost inefficiencies and a nascent market.