Session Three :

CEO Executive Interview: The Aviation Leadership Challenge

The second part of the business session 'CEO Executive Interviews: The Aviation Leadership Challenge,' highlighted the issue of fuel hike and its effect on the aviation industry. Peter Harbison, Executive Chairman, Centre for Asia Pacific Aviation, discussed this topic at length with Ramki Sundaram, CEO and CFO, Deccan Aviation Ltd. "The real risk of fuel hike is that we will go back to the past regime, limiting the market due to prices," said Sundaram.

The fuel hike has raised a lot of questions for airlines across the globe and in India due to the added percentage on the global oil prices. “It's a question of what kind of growth we want and the segments we want to address. There is no doubt left on the future of these Low Cost models, which have no other option, but to close some of the routes which do not provide high yield,” stated Sundaram.

If the oil price as is being predicted keeps increasing, the airlines will have to limit their routes and address the market profitable to them. The fact that there is no slacking of Indian growth rate, which stands at a healthy eight per cent; it is believed that there will be some balance that will come forth.

After the acquisition of Air Deccan by Kingfisher, a lot of attention has gone towards the marketing and branding of the product. “We are looking at providing no frills service affordable by an Indian traveller. As far as the marketing perspective is concerned, we are communicating that Deccan is a product that gets you ahead,” added Sundaram.

Answering to the question of only three to four airlines operating in the domestic market, Sundaram said, “Seeing the pace with which India is growing it can be the other way round and we might see many more carriers operating in India in the coming years.