Indian Aviation Faces Headwinds | Aviation International News

Indian Aviation Faces Headwinds

Consolidation of Indian airlines is inevitable as losses mount and capacity continues to increase.

Two of three Indian full-service carriers are suffering losses. (Photo: Neelam Mathews)

By Neelam Mathews

November 23, 2018

An inherent contradiction is unnerving the Indian aviation market as growth in passenger numbers hits an all-time high and financial returns an all-time low. Airlines are facing the steepest loss in a decade with a depreciated rupee against the rising U.S. dollar and fuel prices, a fierce and aggressive competitive environment, and failing airport infrastructure. This is “expected to push airlines deep into the red” this year, noted global analytics company Crisil. Consolidation in the industry seems inevitable.

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