Devil's Advocate :: 4/5 :: Praful Patel admits aviation in dire straits

Published on Sun, Aug 09, 2009 at 22:55, Updated on Mon, Aug 10, 2009 at 03:03 in Business section
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"Private sector airlines have been severely criticised for threatening a strike but are the issues that they have raised more justified than legitimate? Karan Thapar asked Minister for Civil Aviation, Praful Patel.

Karan Thapar: Mr Patel, let's start with the state of private sector airlines. They say that in the last year they have lost Rs 10,000 crore. The Business Standard estimates that their cumulative losses are somewhere in the region of Rs 50,000 crore and Vijay Mallya says that it is probably cheaper not to fly than to fly. Would you therefore accept that private airlines face dire straits.

Praful Patel Let's accept one thing. The entire aviation sector, worldwide and in India, is going through a very difficult phase. Everyone tends to be forgetful of the reasons behind it. In 2008, the oil prices reached $147. That one year gave a hit of almost Rs 10,000 crore to all the airlines in India. Combined that with the fact that there is an economic slowdown. Today, if 30 per cent people are flying less than last year, you are bound to have empty seats on planes and you are going to see that much more money is being lost......................."

http://ibnlive.in.com/news/devils-advocate-praful-patel-admits-aviation-in-di...

Category:

News & Politics

Tags:

• Praful Patel
• Indian Airlines
• India
• Private Sector Airlines
• Devil's Advocate
• Karan Thapar
• 4/5

[pritparikh2007]

Poor Karan