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You seek to avoid the price war;  Akasa enters market at difficult time: Spicejet president

In an exclusive interview with CNBC-TV18, SpiceJet Chairman and CEO Ajay Singh said Akasa Airways, backed by Rakesh Jhunjhunwala, is entering the industry at a very difficult time and hopes to avoid a price war with a new competition.

“When it comes to new entrants, the competition is always good, it makes you more efficient. However, this is a terribly difficult market that Akasa Airways is entering. They also do not enter at the best time due to the after effects. COVID, oil prices and currency issuance etc. But I’m sure they’ll find a way to make their business viable. “

He said the price war in aviation creates monopoly situations, hurting the industry.

“The aviation industry has seen many price wars. Ideally, we should all work to reduce Indian aviation costs. Price wars are always unhealthy for the industry, they create monopoly situations. therefore important that people sell above cost. “

India has been one of those markets where costs are traditionally very high due to taxes imposed on aviation, while tariffs have remained very low, he added.

Singh said reducing airport charges and bringing aviation turbine fuel (ATF) under the Goods and Services Tax (GST) regime are extremely important to the industry.

(Edited by : Thomas abraham)

First publication: STI


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