India should not interfere with domestic airline industry, says IATA official

A top executive at IATA has said that the Indian Government should not interfere in the domestic airline industry; instead, it should allow market forces to determine the success or failure of the airlines.

“India is a highly regulated market. The Government in every market sets the rules of the game to provide sufficient infrastructure, but it should see to it that regulatory and infrastructure costs are at a low level. But it should not interfere with the market. The success and failure of the airlines is up to the market and the consumers,” IATA’s chief economist, Brian Pearce told BusinessLine.

Pearce said while airport privatisation in India has generated good quality investments, it has also generated in high-service charges and is holding back air travel.