Federation of Indian Airlines appoints new director

The Federation of Indian Airlines (FIA) has zeroed in on CII’s Amitabh Khosla to head its operations. Mr Khosla, who is likely to be designated as executive director, was earlier heading CII’s infrastructure wing, and will report to FIA chairman V Thulsidas. A source in FIA said that Mr Khosla has been invited to join the association and will be suitably designated once the association gets formal society status. Last month, head honchos of member carriers met in Mumbai to approve the association’s new logo and agreed to sign a memorandum of association to enable it to register as a society. Though the association was looking at appointing a head hunter to scout for a director general to head the organisation, sources indicated there were some differences of opinion among the members. Ever since scheduled carriers decided to form an industry forum, fears of airlines ganging up to jack up air fares have been going the rounds.

However industry players allay such fears citing the competitive nature of the industry. Members maintain that the association will take up those issues with the government that affect the industry on the whole. “At a time when there is overall growth in aviation business, it is important for individual industry players to remain healthy. A situation where industry grows and players remain sick is not a healthy sign,” argued CEO of a full-service carrier. Even as passenger traffic has grown by 50% in the first six months of 2006, carriers are expected to end the current fiscal with cumulative losses of around Rs 2,000 crore. The government has already indicated that it will enforce stricter guidelines to allow entry of only financially viable companies enter the airline business. Fuel accounts for 35-40% of total operational costs of any domestic carrier. Jet fuel price in India are around 30% more than global rates.

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