Wednesday, January 29, 2020

Fledgling Air India Only Has A Few Months To Find A Buyer Before Failing

The Indian aviation sector has been one of the greatest untapped potential parts of global aviation, yet also one of the counties that faces the greatest challenges.

Major airlines such as Kingfisher and Jet Airways have come and gone. Racking up huge piles of debt and struggling to get around red-tape in the aviation sector.
Air India is not different, however, it has for many decades had the support of the Indian government. Time after time the government has prevented other private carriers from succeeding to support consistently unprofitable and inefficient Air India.

Competition has been almost impossible since the government imposed certain rules for new carriers such as ticket price limits for domestic flights, and the necessity to operate largely unprofitable domestic routes for five years before being allowed to compete on profitable International routes.
These rules have all but supported a perpetually loss-making Air India—until now.

29/01/20 James Asquith/Forbes
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