Q&A with : Ajay Singh, Chairman and Managing Director of SpiceJet
Updated on: 27 Jun 2016
Govt. should allow domestic airlines to grow and help reduce the cost of aviation, says Ajay Singh.
Reacting to the government's move to further open up the aviation sector for foreign players, SpiceJet Chairman and Managing Director Ajay Singh said no country would allow Indian companies to substantially own an airline in their country. Speaking on the sidelines of Assocham's 9th International Conference on Indian Civil Aviation and Tourism, Mr. Singh said government should allow domestic airlines to grow and help reduce the cost of aviation. Edited excerpts:
You said at the event that opening up the sector wouldn't help the industry but bringing down the cost of aviation would. Were you hinting at the foreign direct investment (FDI) liberalisation or easing of the 5/20 norm?
I believe the principle objective of the policy is the need to reduce the cost of aviation. It's only when you reduce the cost of aviation that you bring down fares and only then this growth rate would continue. This 20 per cent growth we are talking about is not likely to continue if we don't keep the fares low. So, all of us first need to work together to ensure that the cost is low and airfares are low.
What are your views on the FDI reforms?
That's a government prerogative. This is an enabling legislation which is always good.
You were in favour of retaining 5/20 norm. What is your view on the move to relax the rule?