Thursday, April 17, 2008

'Airlines will rationalise their capacity according to the market in order to survive'

Airlines in India need to develop ‘other-income’ business models

Big airline carriers in India are facing tough challenges. Jet Airways is reported to post a loss for its just-ended financial year while others such as Air-India and Deccan are fast losing market share. What could be done to swing a change in their fortunes?
“Airlines in India need to develop other income business models i.e. non-airfare related, take a hard look at their route and fuel strategy and focus on improving yields in order to survive,” feels Mr Kuljit Singh, Partner (Transaction Advisory Services), Ernst & Young (E&Y).


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