A senior official from British Airways has said that high fuel costs along with a high user fee charged at some airports has made it difficult to run an airline company in the country. India has constantly faced high fuel price problems, which results in inflation of other products in the country.
Christopher Fordyce, the Regional Commercial Manager of British Airways Plc said, “Cost element is very significant. India is very significantly costly place to run an airlines”. Fordyce added that they have seen a significant rise in the prices of fuel, airport fees and some other costs which are included in the aviation sector. This makes it difficult for some carriers, particularly those that are unable to charge a premium to be successful.
Airline Industry experts said that the air turbine fuel cost in India constitutes nearly 40 percent of the ticket cost, against just 25 percent in other countries.
When asked about their expansion plans, British airways said that presently they do not have any plans to add new destinations. Christopher added that such expansions are economic decisions and that they would have to take into account various costs. When the costs are high it becomes less attractive to expand, unless it is made up with the additional revenue.
