The Hindu Business Line : Airline CEOs to meet on Oct 16

The problems faced by the domestic airline industry would come under close scrutiny on October 16 when the Chief Executive Officers of various airlines meet in Mumbai.

The meeting is not only to consider what the informal airline association should be called, but also more serious issues like what can be collectively done to ensure that sickness in the industry is avoided.

"The meeting is a sequel to the deliberations that were held with the Minister for Civil Aviation, Mr Praful Patel, in Delhi recently. At that time we decided to form an informal association that is to be headed by the Chairman and Managing Director of Air India, Mr V. Thulasidas. The meeting in Mumbai would be the first of the association and issues worrying all airlines such as the northward movement in domestic cost of aviation fuel and pricing-related matters are likely to be taken up," said an airline official.

The domestic airline industry has been facing a crisis in the recent past. While the domestic passenger traffic is growing at more than 50 per cent during the first six months, many airlines are reporting losses. Low-cost airline SpiceJet reported a loss of Rs 17.8 crore during June-August this year, while Air Deccan reported a loss of Rs 341 crore for a 15-month period ended June this year.

At the Delhi meeting, while making it clear that the Government was not keen to intervene on pricing issues, the airlines were asked to look at taking preventive measures to avoid 1991-like situation when a number of start-up airlines closed due to heavy losses incurred by them. The Government also indicated that it could look at taking preventive measures such as seeking the quarterly financial statement of the airlines to check on their financial health.