While mindful of the challenging operating environment in India’s aviation industry, Singapore Airlines (SIA) is confident that its planned joint venture with Tata Sons for a New Delhi-based airline will take off.
“By no means do we think this is going to be a walk in the park,” said chief executive officer Goh Choon Phong at a results briefing yesterday morning, noting that India’s domestic aviation sector is a challenging and competitive one. “If we do not have the confidence to make it work, we wouldn’t have been in there,” he later added.
Indian law requires airlines to operate domestically for five years and build their fleet up to 20 planes before they can fly abroad, although recent media reports out of India have suggested this rule could soon be scrapped. High operating costs and infrastructure limitations are other issues the industry is grappling with.
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