Business Standard

<b>Letters:</b> Flawed model

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Business Standard New Delhi

Private airlines, as you have pointed out (‘Wrong course, captains’, Aug 3) have got the wrong end of the stick. The reason why they are making losses doesn’t have as much to do with high prices of aviation turbine fuel as it has to do with their faulty business models. Our economy, as the rest of the world, is going through tough times, and people don’t want to spend as much on flying.

So, it is no surprise that the airlines making money are the low-cost ones — IndiGo and SpiceJet. Instead of asking the government to bail them out, the airlines would do well to fix their business model. In any case, fuel prices have fallen by half over a year ago, but the airlines are still making losses.

 

Satinder Arora, New Delhi

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First Published: Aug 04 2009 | 12:13 AM IST

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