May the force of coopetition be with you – Jeh Wadia

Coopetition: sounds quite paradoxical, doesn’t it? Let me explain. It is but obvious that increasing competition in any industry brings with it a fair share of issues that must be dealt with—some explored, some unexplored. Similar is the case with the aviation industry in India. There are quite a few pressing issues that need to be weeded out while in their infancy, thereby preventing the metamorphosing of any of these issues into gigantic problems in time to come. The Indian civil aviation industry has really grown significantly in the past 18 months, with a slew of airline launches—Kingfisher, Spice, Indigo and GoAir. And so, with other airlines waiting in the wings to join the industry as quickly as possibly. It is important to appreciate that this hyper competition is taking hold in an economic environment of increasing operating costs—specially the rise and rise of Aviation Turbine Fuel (ATF) prices, which typically contribute to nearly 40% of an airline’s operating costs in India.

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