Kingfisher’s situation is dire, Air India is on government-provided life-support: IATA
IATA director general and CEO Tony Tyler, in his keynote address to the Confederation of Indian Industry, said (25-Jul-2012) all the network carriers in India are struggling financially. "Kingfisher’s situation is dire. And Air India is on government-provided life-support of financial bailouts and other forms of protection," he said. He noted that "in the case of Air India, long-term state-aid has not rehabilitated the business and in the meantime it is having a destructive impact on the market". He also noted "Governments must lay the foundations for fair competition and regulate safety, security and sustainability". [more - original PR - Speech]
IATA: "Urgent and coordinated actions are needed to resolve Air India’s problems and return the market to normal commercial principles as quickly as possible. Government aid must not be a blank check. Clear accountabilities and timelines for management, employees (including the pilots) and everybody involved have to be set. And transparent disclosure is needed to measure progress. Without this, the attempts to rescue the national carrier could well send the whole sector into intensive care." Source: Company statement, 25-Jul-2012.