Difficult to run airlines in India: BA
- From bang to bust: The story of Vijay Mallya's Kingfisher
- Labour Ministry to probe Kingfisher Airlines' PF contributions: Bandaru Dattatreya
- Chinese Army spotted along LoC in Pak-occupied Kashmir
- Hope to pass GST, bankruptcy bill this session: FM Arun Jaitley
- Probe illegality, but don’t kill lending, cautions RBI Governor Raghuram Rajan
High fuel cost coupled with high user fee charged at some airports make India a difficult place to run airlines successfully, a senior official of British Airways said here today.
"Cost element is very significant. India is very significantly costly place to run an airlines," Christopher Fordyce, Regional Commercial Manager (South Asia) British Airways Plc, told reporters.
"We have seen significant price increase in fuel cost, airport fee and some other cost that included in aviation sector which make it difficult for some carriers particularly which are unable to charge premium, to be successful," he said.
According to industry experts, Air Turbine Fuel cost in India constitutes nearly 40 per cent of the ticket cost against 25 per cent in other countries.
To a query on British Airways' expansion plans in India, he said as of now they do not have any plans to add new destinations.
"These expansions are economic decisions. We have to take into account cost. And wherever you have high cost it will make less attractive to expand. Unless you can make it up with additional revenue," he said.
Meanwhile, BA today announced that it will be expanding its route network from Hyderabad and Chennai from summer 2013 to six flights per week from the current five flights per week.
"India continues to be one of the fastest growing markets for British Airways and we are proud to be participating as well as contributing to India's tremendous growth story," Fordyce said.
He said that the airlines offers an attractive discount exclusively for its Hyderabad and Chennai customers flying to London.
- Across the aisle- Budget 2016-17: The fiscal math is puzzling
- ‘Q’ is an important reminder, when India began to become a kleptocracy
- No one can quite figure out Donald Trump. He is popular when he should not be
- Reverse swing: Why Trump suits Hillary
- Inside track: At 88, L K Advani is a master politician
- India needs a stabilisation sovereign wealth fund