Friday, November 29, 2019

India’s Aviation Industry Stares at Bleak Future Despite Being Fastest Growing Market

New Delhi: India’s civil aviation sector is currently grappling with a financial crisis, which has led to the implosion of the country’s second largest airline Jet Airways.

All major airlines in India, including aviation giants Spice Jet and Indigo were operating at a loss for the financial year 2018-2019. The loss-making airlines include state-run Air India, which has been incurring losses for the last two years, India’s federal Civil Aviation Minister Hardeep Singh Puri told Parliament on Thursday.

Indigo, which showed positive growth in 2017-2018 with $362 million approx (Rs.25,766 million) profit, incurred losses of $69 million in FY2018-19. Similarly, Spice Jet posted losses of $37 million in 2018-19.

The loss comes as the International Air Transport Association (IATA) termed India the fastest growing domestic air travel market globally, followed by China.

According to the India’s Aviation regulator Directorate General of Civil Aviation, India had 139 million domestic air travellers in 2018 — up 18.6 percent from 117 million in 2017.
28/11/19 Sputnik 
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