Singapore Airlines (SIA) chief executive Goh Choon Phong has said running a successful joint venture airline in India will be a challenge.
“By no means do we think this is going to be a walk in the park. The venture being set up in India will have its challenges. We are all familiar with some of the challenges in India. It’s a very competitive market domestically, and for a new start-up, the current rule says one has to operate for five years and have a fleet of 20 aircraft before you’re allowed to go abroad. And, we all know how competitive the domestic market is. Therefore, it is going to be a highly challenging venture to actually make it work,” Phong said.
“We don’t take it (challenges) lightly. But of course, if we did not have confidence to make it work, we wouldn’t have been there. As with any venture, there will be risks. But we believe that is acceptable, given the potential and the benefits we see this venture eventually bringing in.”
Full report here Business Standard