Airlines do not have influence on prices they pay

GENEVA: Airlines are price takers as they do not have an influence on the prices they pay, Iata chief economist Marie Owens Thomsen has said and highlighted that carriers' need to diversify their revenues is complicated by slim profit margins as well as weak balance sheets.

- Press Trust of India

In a fast-growing aviation market like India where the air traffic demand is on the rise, there are concerns about airfare trajectory and suggestions from various quarters to make air tickets more affordable.

Discussing overall airfares and the costs of airlines, Thomsen said airlines do not have any influence on the prices they pay.

"There are too few aircraft manufacturers and oil companies. Whatever supplies we are looking at upstream, we are price takers and downstream, we have the hyper competitive environment where all customers can see all fares from all airlines at all times. So, we always compete in price," she told PTI in an interview in Geneva earlier this week.