Jet Airways Should Pull Out Of The Race To Offer Cheaper Airfare, Says Former Air India Director
Is India’s aviation industry mature enough to consider economic viability over short term market share gain?
Higher aviation turbine fuel prices, ageing fleet and the pressure of running a full-service airline are hurting Jet Airways Ltd. The only solution to these problems is to pull out of the “rat race” to offer cheaper airfare, said former Air India Director Jitender Bhargava.
Being a full-service airliner, Jet Airways’ costs are higher compared to budget peers like InterGlobe Aviation Ltd.-led IndiGo and SpiceJet Ltd.
“If Jet Airways is going to price its tickets at the same level as IndiGo, which doesn’t even provide food and other facilities, how is it going to break-even?” Bhargava pointed out in a conversation with BloombergQuint.
India is one of the world’s fastest-growing aviation markets, expanding at nearly 20 percent every month. But a price-conscious consumer base has prompted airlines to offer deep discounts, leading to a crisis like that of Jet Airways.
Are the airlines only looking at protecting their market share and not concerned about the economic viability? he questioned. “Are our airlines immature?”
Watch the full conversation here:
