Air Arabia, the largest low cost carrier from the Gulf is different from its peers from Gulf. Unlike Emirates and Etihad, Air Arabia does not carry much onward traffic (about 80% is point to point) and carries little labour traffic, airline chief executive officer Adel Ali says in an interview with Business Standard.
Ali says operating costs to India are 40% higher and the airline has no immediate investment plans in India. Excerpts. when asked how he sees the Indian market after the government allowed foreign airlines to invest in India.
He told that ndian market has not changed. It has grown and it continues to grow. It has always been a good market considering its size and population, and the positive trend of its economy relative to rest of the world....i do not think its gloom and doom.
Talking about indian market growth he stated that There has been a growth year on year till 2008. For the last two years they have not be able to grow. They have utilised all our capacity under the bilaterals. Their seat factors are high but until such a time we are granted additional capacity there will be any growth and regarding the costs of operation in India
He told that the Operating costs to India are high. The fuel costs are high...airport charges are high...quite a lot of additional charges airlines have to pay. India (airlines) pay atleast 40% more to operate than else where.
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