Covid crisis the perfect opportunity to turn Indian aviation around: SpiceJet's Ajay Singh


This is the single most challenging time for aviation in the world, SpiceJet Chairman and Managing Director Ajay Singh said today.

Talking about the current Covid situation in the country and the complete lockdown imposed by the government, Singh, in an interview to ET Now, said that even though the crisis has brought the country's aviation sector to a complete standstill, this is the perfect time to bring about structural reforms in the sector.


“People say that India only reforms in a crisis and if that is true, we should certainly use this crisis to bring about the reforms that we have sought for so long,” he said.

Talking about reports about flights being allowed to function with only limited capacity, the co-founder of the budget airline said that such a system may not be sustainable in the long-run.

Flying with a 60-65% passenger load is not viable and if the restrictions are in place for long, many of India's airlines will find it difficult to fly profitably, Singh noted.

"Airlines are in a situation where sometimes 85% or 90% load factors also do not make us money because of the structure that we have around us," he said.

Emphasising on the need for government stimulus, Singh said, "government will have to find a way to reduce on the cost side some of our costs if a situation like this continues."

On the government's requests to India Inc to avoid layoffs at this time, Singh said it would be very difficult to adhere to. "There is a huge amount of short-term pain, especially for those people who are not getting their salary, getting reduced salaries, getting delayed salaries, that we can never minimize," he said.

The aviation industry has been the hardest hit industry in this crisis, he said, "but in all of this there is an opportunity for the aviation sector to re-look at the way we do our business."

Many airlines in India are close to bankruptcy as their cash reserves are running out amid the nationwide lockdown. Almost all the Indian airlines, including SpiceJet, have introduced cost cutting measures such as pay cuts and leave without pay to deal with the coronavirus crisis.

The airline, on March 31, had announced that it would cut the salary of its top and mid-rank employees by 10-30 percent for the month of March.

Comments

Post a Comment

Popular posts from this blog

Vistara Domestic Premium Economy vs. Economy – Is The Upgrade Worth It?

Economy on Vistara As one of only two  full-service carriers  in India, Vistara offers a high-quality economy product. On its A320, which used on most domestic routes, it offers 18-inch wide seats with a pitch of 29-30 inches. While this does sound standard, the well-padded seats and adjustable headrest make for a much more comfortable offering than its low-cost competitors. The seats also offer an acceptable 3″ recline. In terms of service, Vistara is one of the few airlines offering hot meals on domestic routes (minus short routes under an hour). All economy passengers, except those booked on Economy Lite fares, receive a meal along with hot or cold beverages. From personal experience, the meals are good and enough for domestic hops. For those traveling on Lite fares, only complimentary hot beverages are available. Vistara also has a small buy-on-board menu, which features packaged snacks and drinks, along with some hot instant meals. Originally, the airline served all passenger’s me
Read more

Why the Airbus A340 Has A Middle Landing Gear

Image
The  Airbus A340  was specially designed for long haul flying and had something not seen with other widebody aircraft flying today. It was a unique middle landing gear that allowed the plane to take off with heavier loads and carry more fuel for its four hungry engines. What is the middle landing gear? If you have ever looked carefully at a picture of an A340 (or if you are lucky, in real life), you might have noticed an extra landing gear on the belly in the middle of the plane. Here it is on a Virgin Atlantic  Airbus A340-600  to the rear of the aircraft. Looking at the bottom of an A340 you’ll see that there are already two other sets of landing gears under the wings, why would an aircraft need a third in the middle? Why some A340s have the middle landing gear Plain and simple, the extra landing gear allows the A340 aircraft to have a higher MTOW (maximum take-off weight). This means more passengers and cargo, plus more fuel to go a longer distance. Perfect for t
Read more

Preparing To Start Domestic Flight Operations Within A Week: Civil Aviation Minister Hardeep Puri

The domestic flight operations are likely to resume within a week, says Union Civil Aviation Minister  Hardeep Singh Puri . The commercial flight operations remain suspended since March 24 after the announcement of nationwide lockdown to contain the spread of coronavirus. In an interview with  Outlook ’s  Preetha Nair , the Union Minister also talks about the government’s massive plan to evacuate stranded Indians and the logistical challenges involved. He also says a decision on operating flights between green zones of the country will soon be taken. You have hinted that the commercial flight operations are set to begin after May 15 in a calibrated way. Can you elaborate? We are preparing to start domestic flight operations even before May 15. My effort will be to try and move in the direction of starting it very soon. I can’t put a date on it because when you are planning evacuation operations, you need the co-operation of the state governments. In order to open up domestic civil avia
Read more