Are airlines in India really suffering?

'Airlines in India are suffering' seems to be common knowledge, but are they really?
A few low cost airlines are in fact doing rather well and now their share of the market has grown to above 50 per cent. The full service airlines are now taking note and tweaking their strategies.
Passengers are dwindling for India's full service airline carriers. It's been a rough ride for these companies over the last few months and at the same time low cost carries have been gaining market share and expect to consolidate their gains, as we have seen in the case of SpiceJet for instance.
The expansion during the boom years of 2006-07 has meant that the industry is saddled with overcapacity. So, India's airline companies have already shed 11 per cent of capacity.
Jet Airways has reduced capacity by nearly 18 per cent while Kingfisher has cut its capacity by 24 per cent during the year. While as full service carriers are reducing capacity, Indigo and SpiceJet have added capacity in the past 18 months.
05/08/09 Ashutosh Sinha/NDTV.com

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Categories: Indian Aviation- In General Aug 2009