Once the ‘king of good times’, Vijay Mallya, has spoken openly about Indian airlines ongoing distress. Mallya has tweeted about the financial distress in aviation industry and blamed it all squarely on higher aviation turbine fuel (ATF) fuel prices.
Currently, the Indian airlines are burning through massive amounts of money, which has resulted in a weak September 2018 quarterly results. There are three airlines that have major market share in India namely, Indigo, Jet Airways and SpiceJet. Other known airlines are GoAir, Vistara and Air India. Boiling crude oil prices have given sleepless nights to these airlines, as their fuel purchase has taken a chunk out of their profits.
Even though Indigo is better placed compared to other two Jet Airways and SpiceJet, yet fuel cost has been a major cause of concern. While the story of Jet Airways is travelling in continuous mayday as the airline faces cash crunch due to hefty fuel expenses, rental leases and debt maturing this year. While the other ones have also blamed ATF cost for their low profit this year. Read More