India’s reputation as a bastion of protectionism may have softened in recent decades, but one area where the Indian government is keen to protect domestic business is in the field of aviation.
Alarmed by the rise of the Gulf carriers, India has stood foursquare behind its airlines, setting caps on the extent to which Gulf airlines can avail themselves of traffic from the sub-continent.
But no investigation of competition between airlines in the Gulf and India fighting for the same traffic can begin without looking at the truly parlous
state of domestic aviation in India today. Research by the CAPA Centre for Aviation shows that huge losses are continuing and the situation looks unlikely to improve quickly.
According to CAPA, India’s airlines lost a staggering $1.65 billion in the last financial year, an improvement at least on the $2.2 billion lost from 2011 to 2012.
In addition, Indian airlines are said to have severe debt levels which are likely to prove burdensome if not resolved soon.
11/11/13 Peter Shaw/Gulf Business
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Alarmed by the rise of the Gulf carriers, India has stood foursquare behind its airlines, setting caps on the extent to which Gulf airlines can avail themselves of traffic from the sub-continent.
But no investigation of competition between airlines in the Gulf and India fighting for the same traffic can begin without looking at the truly parlous
state of domestic aviation in India today. Research by the CAPA Centre for Aviation shows that huge losses are continuing and the situation looks unlikely to improve quickly.
According to CAPA, India’s airlines lost a staggering $1.65 billion in the last financial year, an improvement at least on the $2.2 billion lost from 2011 to 2012.
In addition, Indian airlines are said to have severe debt levels which are likely to prove burdensome if not resolved soon.
11/11/13 Peter Shaw/Gulf Business
