ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • Survey
  • videos
  • photos
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • RBI extends implementation of card tokenisation norms by 3 months; deadline extended till 30 September
  • EXCLUSIVE: 'Noida International Airport at Jewar to be jewel in crown of Indian aviation sector' - Know what all is coming up at
  • D-Street Corner: Market gains 2.7% in highly volatile week, investors richer by 5.5 lakh cr; what should investors do on Monday?
  • Sebi allows UPI payment option to invest in public issues of REITs, InvITs with effect from 1 August
  • Netflix lays off 450 employees in two months—Here's what's bothering OTT giant
Read in App
Business News » India News

Jet failure a 'wake up call'; part of blame at doorstep of policymakers: SpiceJet chief Ajay Singh

Jet Airways operated for nearly 26 years, with an extensive network of domestic and international flights. Indian aviation sector has high growth potential, but airlines have been flagging concerns about high costs, especially for aviation turbine fuel (ATF) that accounts for over 40 per cent of an airline's operational expenses.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Jet failure a 'wake up call'; part of blame at doorstep of policymakers: SpiceJet chief Ajay Singh
The failure of Jet Airways should be a "wake up call" for the aviation industry, Photo: Reuters

The failure of Jet Airways should be a "wake up call" for the aviation industry and at least part of the blame should be at the doorstep of the policymakers as the cost structure is high, SpiceJet chief Ajay Singh has said. Low-cost carrier SpiceJet is expanding its operations and is set to take on lease 30 planes that were flown by Jet Airways, which suspended operations in April due to cash crunch. SpiceJet has at least 100 aircraft in its fleet now. Noting that the grounding of Jet Airways was "very sad", Singh said that internal factors and high costs were among the reasons for its failure.

"Jet Airways grounding is something which is very sad and it should be a wake up for all of us in the aviation sector and the policymakers. I think Jet Airways was an iconic brand, and at least part of the blame for its failure has to be at the door step of the policymakers. "...High cost structure which is being imposed on aviation has certainly led to its downfall and of course, internal factors. The fact that Jet had a cost structure which was probably uncompetitive and as airlines came, it became tough to get yield commensurate with cost structure," he told PTI in an interview.

Jet Airways operated for nearly 26 years, with an extensive network of domestic and international flights. Indian aviation sector has high growth potential, but airlines have been flagging concerns about high costs, especially for aviation turbine fuel (ATF) that accounts for over 40 per cent of an airline's operational expenses. Singh said high taxes on ATF, certain infrastructure charges as well as high import duty on aircraft parts and services are among the factors which make the domestic aviation sector "uncompetitive".

"To compete increasingly with global carriers, it is important that we find a cost structure which is competitive with them. "We need to relook at the way airports are being bid and ensure that we pass on competitive airport cost as well as to airlines. If you want to be a global hub, your charges at airports have to be commensurate with other global hubs... If you do not make them competitive, then you will not be a global hub. We need to look at this in a more holistic fashion rather than just through the prism of Jet Airways," he noted.

About the overall industry sentiment after the Jet Airways crisis, Singh said in the short term, the airline suspending operations helps other carriers. "It... Increases the yields. It enables SpiceJet to grow at a pace which otherwise may not have been possible. But these are short-term advantages; but in the longer term, we need to ensure that the overall aviation sector is healthy. For that to happen, we need to fix the underlying problems. I hope that the government will go some distance to do that," he noted.

Speaking on the sidelines of the just-concluded global airlines' body International Air Transport Association's annual general meeting here, Singh said the aviation sector is a huge force multiplier for the economy and tourism. "It is important that we benchmark our sector with what is happening globally... I think there is understanding in this (Indian) government as was evident in the last term that they need to make the sector competitive," the Chairman and Managing Director of SpiceJet said. SpiceJet plans to hire up to 2,000 staff of Jet Airways, including pilots and cabin crew. The airline has already taken more than 1,100 such people.

To a query about rival IndiGo's dominant market share, Singh said that monopolies are not good for business but did not elaborate. "I don't want to comment on any particular airline except to say that what IndiGo has achieved is something all of us have to be proud of. As far as government, regulators and aviation sector are concerned, it helps the aviation sector to have a balance and be competitive. Obviously, monopolies are not good for business. I would think that everybody will work towards creating balance in competition," he said.

IndiGo, which operates more than 1,300 flights daily, had a domestic market share of nearly 50 per cent in April. During the same period, SpiceJet's market share stood at 13.1 per cent, as per data from aviation regulator DGCA. 
 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Jet AirwaysAviation
Written By: PTI
Updated: Tue, Jun 04, 2019
03:23 pm
Seoul, PTI
RELATED NEWS
ATF Price Hike: Aviation stocks feel the heat! SpiceJet hits 52-week low; IndiGo, Jet Airways drop up to 4% ATF Price Hike: Aviation stocks feel the heat! SpiceJet hits 52-week low; IndiGo, Jet Airways drop up to 4%
Implementation of Jet Airways resolution plan subject to outcome of order, says NCLAT Implementation of Jet Airways resolution plan subject to outcome of order, says NCLAT
Jet Airways gets new CEO - Sanjiv Kapoor | Who is he? Profile Jet Airways gets new CEO - Sanjiv Kapoor | Who is he? Profile
Year Ender 2021: With missed timelines, insolvency cases likely to speed up with improved infrastructure Year Ender 2021: With missed timelines, insolvency cases likely to speed up with improved infrastructure
Jet Airways in talks with Boeing, Airbus for $12 billion order: Bloomberg Jet Airways in talks with Boeing, Airbus for $12 billion order: Bloomberg

LATEST NEWS

Auto major Ford extends production at Tamil Nadu plant till July-end

Strong fundamentals, good dividend yield make Coal India, ONGC, NTPC, 3 other stocks good bets in current market—Check TPs, dividend payout ratios

This Mukul Agrawal textile stock may grow over 52% on strong export outlook and government initiatives

How has technology changed the face of investing and what lies ahead? Analyst decodes

Two-thirds of MSME loan originations concentrated in Maharashtra, Tamil Nadu, and Delhi: Credit information company data

Indian markets should start its journey upward by October – know why? Analyst lists out 4 reasons

RBI exploring options to ensure customer safety dealing with PPIs issued by non-bank entities

BharatNCAP: Government proposes to implement vehicle safety rating, issues draft notification

US one step away from historic gun law reforms

Government extends levy of GST compensation cess till March 2026, finance ministry issues notification

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV