When India’s Jet Airways, Kingfisher Airlines, and SpiceJet all recently reported large net losses for Fiscal Year 2012 on the heels of Kingfisher’s steep downsizing in February and March, it came as a surprise to many people around the globe who considered India, and its burgeoning airline industry, one of the world’s greatest success stories. But as with India’s economic growth story (GDP growth in the first quarter of 2012 was a (relatively by Indian standards) anemic 5.3%), beneath the shiny veneer lies a tottering industry that must take drastic steps in order to ensure its future. But before one can explore the solutions to these issues, it is helpful to look at what exactly created the problems.
Any attempt to assign the collective failure in the Indian airline market to one specific reason is highly disingenuous; it took a special confluence of factors to create this mess. Some of the major factors are outlined below.
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