AirAsia India and Vistara are among the Indian airlines that are struggling due to the pandemic. AirAsia India has announced that Summer 2023 would be its last scheduling season, and Vistara is also facing significant losses.
AirAsia India’s decision to end operations in Summer 2023 comes after the airline failed to attract enough customers during the pandemic. AirAsia India’s CEO, Sunil Bhaskaran, said that the airline could not sustain its operations due to the country’s regulatory environment and high taxes on aviation fuel.
AirAsia India started operations in June 2014 as a joint venture between AirAsia Berhad and Tata Sons. The airline has been struggling since the beginning, and it has not been able to achieve the expected growth due to various challenges.
On the other hand, Vistara, which is a joint venture between Tata Sons and Singapore Airlines, is also facing significant losses due to the pandemic. Vistara CEO, Leslie Thng, said that Vistara had incurred losses of around $156 million in the last financial year due to the pandemic.
The airline had to cut down on its operations during the pandemic, and it also had to freeze its expansion plans. Vistara had plans to launch flights to London, Paris, and other international destinations, but these plans have been put on hold due to the pandemic.
Despite the challenges faced by Indian airlines, some believe that India’s aviation market has significant potential. India has a large population and a growing middle class, which means that there is a significant demand for air travel.
However, airlines face several challenges in the country, including high taxes on aviation fuel, bureaucratic hurdles, and intense competition. As a result, many airlines have struggled to make a profit in India. Some have even had to exit the market, such as Jet Airways and Kingfisher Airlines.
To address these challenges, the Indian government has taken several measures, such as reducing taxes on aviation fuel and easing regulatory requirements. The government is also working on expanding airport infrastructure and promoting regional connectivity.
In conclusion, AirAsia India’s decision to end operations in Summer 2023 is a significant setback for the Indian aviation industry. The pandemic has hit the industry hard, and many airlines are struggling to stay afloat. However, with the government’s support and the country’s growing demand for air travel, there is still hope for the industry to recover and thrive.
Read further.
#AirAsia