‘Full-fledged war’ awaits India’s airline sector

With India set to welcome at least two new airlines this year, the country’s turbulent aviation sector may be on the brink of a bitter war that will ultimately result in consolidation over the next two years, say analysts.

India’s aviation sector, whilst promising huge growth potential due to the country’s growing middle class and low air travel penetration rates, presents a tougher operating environment than most other markets. From intense price competition to exorbitant operating costs owing to high airport and fuel taxes, carriers have been locked in a tenacious battle for survival, with budget operator IndiGo the country’s only profitable airline. Read more

Source: http://www.cnbc.com/
By Ansuya Harjani


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