Airline chiefs from around the world have dismissed worries that the ongoing saga of SpiceJet’s financial problems will have a lasting effect on the Indian aviation market.
Gathered in India for a Star Alliance meeting, global airline chief executives said the difficulties experienced at SpiceJet will not damage India’s image as a growing aviation market.
“I would not like to comment on any airline but I do believe that the problems they are facing would be temporary and not going to impact the potential of the Indian aviation market,” said Temel Kotil, president and CEO of Turkish Airlines.
“The Indian market’s potential will continue to grow as growth in number of passengers has been excellent here.”
Jaan Albrecht, CEO of Austrian said: “I do not think airlines shutting down raise any question on the potential of the Indian market, which will continue to grow. Airlines close down across the globe.”
However Mark Schwab, CEO of Star Alliance, said the Indian government does need to look at improving aviation infrastructure in the country and reduce airlines’ tax burden on fuel to stimulate more growth in the Indian market.
The Star Alliance members were in India for their annual meeting.
India is now a key territory for the alliance after national carrier Air India became a member earlier this year.
