Domestic airline industry is not healthy, foreign airlines are reaping more profit: Air India CEO
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He said IndiGo is doing well and the coming together of Tata’s airlines provides a good competition to IndiGo’s strength. Air India Chief Executive Officer (CEO) and Managing Director Wilson said in an interview with PTI that it is expected that this will help in creating a sustainable and profitable market. This will enable airlines to invest in new products, expand networks and help India regain its place on the world aviation stage.
The Tata group had acquired Air India and Air India Express from the government in January last year. The group currently has four airline companies…Air India, Air India Express, AIX Connect (formerly AirAsia India) and Vistara (JV with Singapore Airlines). The group is also in the process of merging Air India Express and AIX Connect and Vistaar with Air India.
When asked about the GoFirst crisis, Wilson said it was very unfortunate. The flights of GoFirst, an affordable service company facing cash crunch, have been closed since May 3. Currently the airline is under voluntary insolvency resolution process. The CEO and MD of Air India said that this is not the first time that an airline has failed in the country and I think this underlines the structure of the industry which is not conducive to a healthy, vibrant, profitable industry. ”
He said that due to not having a healthy domestic airline industry, India has not been able to control its destiny in some cases. Few foreign airlines coming to India have taken advantage of the growing Indian market more than Indian airlines. “We will continue to invest in aircraft, products, people and systems,” Wilson said. ‘We will have a high quality airline of a remarkable size, professionally operated.’
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