Why does Air India express reluctance to invest in new planes with expanded bilateral rights for Mid-East rivals
Explanation for Air India's decision to withhold investments in aircraft with the potential expansion of bilateral rights for Middle-East competitors.
- Air India may be concerned about facing increased competition from Middle-East airlines if bilateral rights are expanded, leading to potential loss of market share and profitability.
- The airline may lack the financial resources to invest in new planes due to existing debts and financial constraints, making it difficult to compete with well-funded competitors.
- Air India could be cautiously waiting to assess the impact of any potential developments in bilateral rights negotiations before committing to purchasing new aircraft.
- The airline might prioritize other areas of operation or cost-cutting measures over acquiring new planes in response to the changing market dynamics.
- Air India may also be focusing on optimizing its existing fleet and routes rather than expanding its operations in response to market uncertainties and challenges.
Answered
11 months ago