Kochi: One of the biggest hurdles when it comes to successfully operating Air Kerala is to maintain a minimum loss margin in the initial years of its domestic operations, experts opine.
“For an aircraft to post a profit from its operations, it must run at least 17 hours every day. During its domestic operations, the airline must get good slots for its services from good airports and at the optimum time. There will be no use if the Air Kerala services are confined to a busy slot,” said Poulose K Mathew, chairman of the Kerala chapter of Travel Agents Federation of India (TAFI).
“Also the running costs of an airline have to be take into consideration. Fuel cost accounts for almost 70 percent of the running cost, which in turn is heavily dependent on the fluctuations in international market. Any hike in the fuel prices would have to be met with a corresponding fare hike if the airline is to run on profit. The absence of a major investment would mean that the airlines would have to hike their fare prices proportionally and this defeats the stated purpose of a low cost Gulf airline,” he said.
28/03/15 Vaisakh E Hari/New Indian Express
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“For an aircraft to post a profit from its operations, it must run at least 17 hours every day. During its domestic operations, the airline must get good slots for its services from good airports and at the optimum time. There will be no use if the Air Kerala services are confined to a busy slot,” said Poulose K Mathew, chairman of the Kerala chapter of Travel Agents Federation of India (TAFI).
“Also the running costs of an airline have to be take into consideration. Fuel cost accounts for almost 70 percent of the running cost, which in turn is heavily dependent on the fluctuations in international market. Any hike in the fuel prices would have to be met with a corresponding fare hike if the airline is to run on profit. The absence of a major investment would mean that the airlines would have to hike their fare prices proportionally and this defeats the stated purpose of a low cost Gulf airline,” he said.
28/03/15 Vaisakh E Hari/New Indian Express
