Mumbai: It has been a year airlines in India would send for a repair or an overhaul without a blink. Everything that an airline can imagine to go wrong went wrong in 2011.
The sector fundamentals were challenged like never before with high fuel prices, unfavorable foreign exchange rates, negative market environment, economic slowdown and a severe liquidity crunch all forcing companies to go turtle.
All airlines-except perhaps low-cost carrier IndiGo that reported an 18% jump in profits-will be glad to fly out of 2011, but analysts say the New Year may not be much better.
"Heading into 2012, airlines will continue to struggle to raise equity and will need help to take on additional debt, further eroding viability," said Kapil Kaul, India subcontinent Middle East CEO of industry consultant Centre for Asia Pacific Aviation, or CAPA.
In 2011, India's airlines had to defer plans to raise more than a billion dollars, he said in a preview of 2012.
30/12/11 Manisha Singhal/Economic Times
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