The government should allow private airlines to outsource services like security, ground-handling and engineering to enable them become cost effective, Go Air managing director Jeh Wadia said in Mumbai on Thursday.
"The three areas of outsourcing that the government should allow are security, ground-handling and engineering. They should also allow fuel-hedging," Wadia told reporters on the sidelines of the launch of Go Air's in-flight shopping.
"These would make the services more efficient and help in bringing down the costs incurred by the airlines," Wadia said.
Currently, fuel costs constitute 40 per cent of the airlines' cost, he said, adding that if it continues to rise, Go Air would think of including surcharge in the fares.
However, the company would decide on this in the next 2 to 3 weeks, the Go Air MD said.
He expressed confidence in the government's polices and said the results in the aviation sector would become visible in 2 to 3 years.
Wadia said the airline's recent tie-up with the Board of Control for Cricket in India to be the official carrier during the India-England series, "was a start of a long-term association".
"The airlines was in talks with the BCCI for exploring such options in future," Wadia added.
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