NIFTY 50

Expect most airlines to be reasonable and look at increasing yields, says SpiceJet

Updated : September 04, 2018 08:59 PM IST

Ajay Singh, CMD,  SpiceJet  expects most airlines to be reasonable and look at increasing yields.

“We need to ensure that cost of Indian aviation comes down. It is incredibly important that we have level playing field with our peers around the world. On top of the increase in oil prices, on top of the depreciation in the Indian rupee, both of which are making aviation unsustainable, we are also adding a string of taxes and duties on Indian aviation," he said.

"I think that needs to be reviewed. We have requested the government to review it and we are hopeful that some of those costs which have been imposed on airlines can come down,” Singh told.

He said, “SpiceJet needs to be profitable and we have tried very hard to improve our yields. In the last three years there has been a consistent trajectory of increasing yields and today SpiceJet’s yields are amongst the best in the market. We will try our best to keep up the yields and we expect that rational business behaviour would be that most airlines will try and make money and therefore will try and increase yields.”

“You will see an increase in yields as better season starts in October. You will see that airlines will raise fares because demand picks up in October and carries on for a few months after that. So yields should improve, but I think strategically, tactically, it is extremely important for airlines to increase.” he added.
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