Air India-Vistra: This merger is not easy... IATA said- 'It is difficult for airlines to earn profit, these are the challenges'
Air India-Vistara Merger: Regarding the merger of Air India and Vistara, the IATA official said that before this merger, the airlines need to resolve many other issues.
Air India-Vista Merger: After the acquisition of Air India, Tata Group has 3 airlines, whose operations it looks after. Apart from Air India, it also has AirAsia India and Vistara. In such a situation, speculations are also being made that Air India and Vistara can also be merged. Regarding this, a senior IATA official said that many other issues should be resolved before this merger.
making profit is not easy
International Air Transport Association's (IATA) regional vice president of Asia Pacific Philip Goh said at the 78th Annual General Meeting of the global airlines body that it is not easy for an airline to make profit in India. It should first address several issues like fair cap and high tax on Aviation Turbine Fuel (ATF).
These issues have to be resolved
When asked whether Vistara and Air India should be merged by the Tata Group? He replied that both (Air India- Vistara) are full service carriers. Vistara is still a very small airline company. Although he is in business for 5-6 years, still he is running in loss. Making profit for an airline in India is not easy. They have to solve many issues.
Goh said that he is sure that some sort of discussion must be taking place between the Tata Group and Singapore Airlines regarding the merger between Air India and Vistara.
Airlines should fix ticket pricing
Regarding the aviation sector in India, Goh said that the pricing of flight tickets should be left to the airlines. The way it is being controlled in the country, it should not be done. He said that tax on fuel and everything else has always been an issue for airlines.
He said that any decision taken by the government to increase the cost of airlines is bad for the economy of the aviation sector.
Price cap imposed after Kovid 19
After the Corona epidemic, the air services across the country came to a standstill due to the lockdown in the entire country. After this the services were resumed from May 25, 2020. However, the Ministry of Civil Aviation had imposed a lower and upper limit on the air fare depending on the duration of the flight. For example, currently flights with a duration of less than 40 minutes cannot charge less than Rs 2,900 (excluding GST) and not more than Rs 8800 (excluding GST).
On October 8 last year, the Tata Group won the bid for the airline. After which the control of Air India and its subsidiary Air India Express came to the Tata Group on 27 January.
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