Aviation sector needs pricing discipline

Mumbai, Sept 29 | Updated: Sep 30 2006, 05:30am hrs
Pricing discipline in terms of fares seems to be the need of the hour for the Indian aviation industry, which has been running into huge losses.

In India, fares of full service carriers are almost at par with low cost carriers even though the operating cost is totally different from each other, Centre for Asia Pacific Aviations consulting CEO Andrew Miller said. He was speaking at the 3rd annual low-cost airline symposium organised by CAPA.

Although India is one of the most dynamic low cost airline markets in the world, the result has been appalling when compared with other markets. Usually in any market, there is a single big player and few smaller carriers vying for different markets and segments. In India, all the carriers are battling on the same markets and contest for each others passengers, Miller said.

The aviation market has grown about 50% in January-June. But the balance sheet of airlines reflect a different picture. A plain economic sense tells airlines dont need to continue on the same path we have been treading so far, said SpiceJetsAjay Singh.

Taking a cue from the weakening of companys bottomline, airlines have somewhat learnt to work together by sharing infrastructure and carrying each others passengers. But, the woes are still far from over. Air Deccan COO Warwick Brady concurred, Last year, we had self inflicted pains due to poor management. The concept of airline suicide was very much prevalent in India.