New Delhi: Turbulent skies will continue to be a reality for Indian aviation in the new year, much like in 2012. Despite some policy initiatives and lessening competition, Indian airlines will continue to struggle—because of their inherent inefficiencies, due to policy overhang and a difficult operating environment.
Centre for Asia Pacific Aviation, in its Outlook 2012-13 released in May, estimated that India’s airlines would post a combined loss of $1.3-1.4 billion and that this loss would be largely on account of two airlines—Air India and Kingfisher Airlines.
The highlight of 2012 has to be the demise of Kingfisher Airlines—which fell from the skies because of unmanageable debt, inability of the management to pay employees, keep aircraft in working order and in the end, even to adhere to a published schedule.
26/12/12 Sindhu Bhattacharya/Fist Post.com
