Mumbai: Incumbent airlines in India are reworking their finances and
business strategies to stay fit to deal with intense competition
expected from new airlines.
Though AirAsia India has commenced operations two months back, it is yet to unleash its full potential. Another new airline, Vistara, a joint venture of Tatas and Singapore Airlines, is expected to be airborne in October. Besides, six new airlines are waiting for clearances to enter business.
Considering this, incumbent airlines are cleaning up their balance-sheets and acquiring financial muscle apart from controlling costs to deal with the situation.
Bolstered by financial backing from Etihad Airways, Naresh Goyal, Chairman of Jet Airways, is talking tough to bounce back and effectively deal with competition. Jet has decided to solely concentrate on full service category to focus on profitable growth with an emphasis on debt reduction. Etihad has committed to help Jet to retain its lost glory. SpiceJet is in the process of mobilising fresh funding from its promoters. The airline’s board has increased the company’s authorised share capital to Rs.1,500 crore from Rs.1,000 crore to enable it to raise more money. The airline is willing to take foreign investors on board to improve its finances.
Read news in full 25/08/14 Lalatendu Mishra/The Hindu
Though AirAsia India has commenced operations two months back, it is yet to unleash its full potential. Another new airline, Vistara, a joint venture of Tatas and Singapore Airlines, is expected to be airborne in October. Besides, six new airlines are waiting for clearances to enter business.
Considering this, incumbent airlines are cleaning up their balance-sheets and acquiring financial muscle apart from controlling costs to deal with the situation.
Bolstered by financial backing from Etihad Airways, Naresh Goyal, Chairman of Jet Airways, is talking tough to bounce back and effectively deal with competition. Jet has decided to solely concentrate on full service category to focus on profitable growth with an emphasis on debt reduction. Etihad has committed to help Jet to retain its lost glory. SpiceJet is in the process of mobilising fresh funding from its promoters. The airline’s board has increased the company’s authorised share capital to Rs.1,500 crore from Rs.1,000 crore to enable it to raise more money. The airline is willing to take foreign investors on board to improve its finances.
Read news in full 25/08/14 Lalatendu Mishra/The Hindu
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