Go Airlines Remain Upbeat Despite Hardships in India's Aviation Industry

Thursday, 23rd August 2012 at 10:34am

According to De Roni, the economy in India has been growing at a faster rate than any other country in the world which is a positive factor most investors should consider when looking for business opportunities in India. As a result, the purchasing power of the growing middle-class is also on the upswing making it an attractive market for airline companies.

De Roni laments about the country's outdated legal framework governing Indian market that needs some amendments in order to be able to make the airline business a more profitable enterprise. For years, high taxes have saddled companies who are into airline business which is more expensive than anywhere in the world. The $4000 per hour cost of jet fuel in India is 25 percent more than most other countries around the world. Slashing down the cost of jet fuel will allow Indian airlines to offer more affordable fares to air travelers and be more competitive in the world market. Most often than not, the state of the aviation industry of every country is highly dependent on its commercial airline businesses. The airline businesses contribute significantly to the economic development of the country as they bring in tourists and employment as well as foreign currency that makes the economy afloat.

The 300 percent increase in airport fees the past year was considered the worst the industry had ever experienced. As a result, airlines had to bear the unexpected hike because they can't pass it on to their customers. These erratic behaviors in the airline business create undue difficulties to the airline companies. De Roni pointed out, however, that airlines should not involve in matters that only the government has the power to act on. They should focus on the business of providing public conveyance to their guests rather than busying themselves on things they are not supposed to involve in.

De Roni started in the industry in 1983 as a check-in agent at an Italian airport and rose in ranks over the years.

The CEO does not live far from where he holds office. He confesses that he always sees to it that interaction with his staff, clients as well as investors is important to keep communication lines open which promotes productivity among the staff and business growth. Weekends offer opportunities for him to formulate strategies that would possibly take the company far into the future.

He observed that the global airline industry has experienced radical changes over the years that might have sent others to the brink of extinction. However, he opined that it should be viewed as a boon to the industry that create opportunities for companies to become more resilient amidst the changes. He said the business atmosphere was quite different when he first entered into the industry as a lowly agent in 1983. It evolved over time and has become more challenging for investors while at the same time providing enormous benefits to air travelers. This is not unique to the aviation industry in the sense that it also happens to all other industries. In India, for example, he observed that the young generation is very open to changes and they are willing to work as necessary. He is very thankful for the support that he gets from his staff.

While he keeps himself busy working even during the weekends, De Roni still finds time to travel all over the country and finds the mountains up north quite irresistible. He admitted that he enjoy a lot going on long treks crisscrossing the beautiful mountains of India which offer unparalleled natural allure. He has been a big fan of the mountains as his hometown in Italy is close to the border with Austria where tall mountain ranges dominate the scene. Though his family lives in Italy, he always makes sure that he spend lots of time with them every time they come to visit him in India. He was specially amazed by his latest visit to Jammu and Kashmir regions.

De Roni finds it baffling why India lags behind Sri Lanka in terms of tourist inflow when India has a lot more to offer than its tiny neighbor in the Indian Ocean. He suggested that India needs a more aggressive promotional campaign to position itself in the global travel map. Its tourism potential is particularly enormous and it has not been fully tapped to take advantage of.

He offered that Go Airlines will eventually fly out of India to international destinations in the near future. Currently though, industry regulations prevent the airline to offer international flights because of the present law that requires local airlines to have a minimum of 20 aircraft. Go Airlines has a current fleet of 13 aircraft which fly to 21 key destinations across India.

By: Pete Lee.