Air India should follow JAL’s example says IATA Chief
Neelam Mathews July 25, 2012 IATA DG and CEO Tony Tyler - on a rushed visit to India- made it clear the world beyond the sub-continent sees Indian aviation in crisis. Airline losses were around $2 billion in the year ended March 2012, following a loss of $3.5 billion over the previous three years. “(As far as Air India goes), a long-term state-aid has not rehabilitated the business and in the meantime it is having a destructive impact on the market. Governments must lay the foundations for fair competition and regulate safety, security and sustainability,” said Tyler. He suggested the carrier could follow the example of the restructuring of Japan Airlines (JAL), which made a profit last year. The JAL case has some parallels with Air India. Both merged with a primarily domestic partner - JAL with Japan Air System in 2002 and Air India with Indian Airlines starting in 2007. The 2008 fuel price spike, global financial crisis and subsequent recession hit both carriers...