Tuesday, August 28, 2018

Air fare war weighs heavily on Indian airlines

Global carriers have flocked to India, lured by a domestic travel boom and what’s expected to be the world’s third-biggest aviation market by 2025.

But India has proven an intensely competitive market, where profits are scarce and the life expectancy of weaker airlines is anything but certain.

Air India, the state carrier, is indicative of the brutal aviation landscape in India. The airline is surviving on bailouts and no bidder showed interest when the government wanted to dispose of some of its assets this year.

And in a sign that few have faith in in its survival, a fake staff email with an Air India letterhead dated August 25, 2018, saying the airline will be permanently shutdown on October 1 by government order, created panic among its 27,000 workers. It quoted what it said were comments from the Supreme Court that "due to poor profit margins and stagnant growth for years, the government is unable to bail out Air India owing to low probability of future returns". 2,513,350,439
27/08/18 The National