Airline with a skewed value chain; The profit margin never crossed 5 pieces; Iata Executive | Mint

New -Delhi, June 6 (PTI) Air Services struggles worldwide with a crooked value chain worldwide and historically the profit margin has never crossed by 5 percent, according to Iata’s chief economist Marie Owens Thomsen. She also expressed the hope that any attempts to address the value chain of the airline will surely be an example for other countries. India is one of the world’s fastest growing civil aviation market. At an interaction in the national capital this week, Thomsen said the crooked value chain for the Global Airlines industry is also the result of legacy policies. Thomsen is the chief economist and senior vice president sustainability at the International Airport Transport Association (Iata), a group of more than 350 airlines. “No one sat down from the beginning and said, I’m going to create a super -crooked value chain and make sure the airlines never make money.” I don’t think anyone has the intention. But unfortunately, it’s kind of where we ended up. And we operate worldwide have never made a profit margin of more than 5 percent, ‘she said. While she noted that all value chain participants earn more money than the airlines, she mentioned about the oligopolistic price of the aircraft manufacturers and the large market power of oil companies. ‘ … then upstream you know, especially in India, maybe a very price -competitive environment … Our customers choose their airlines at the prices. So the airlines are left completely between these two with very few ways, ‘she said. Furthermore, Thomsen said that if the Indian government tries to do everything to create a less crooked value chain, and it can be, then it would surely be an example to follow for every other country. For 2025, Iata Airlines reported to report a net profit of the US 36 billion and a 3.7 percent profit margin.