The airline business is cutthroat in virtually every market in the
world, but it is especially difficult for start-up airlines in India.
Fuel prices and fickle passengers aside, start-up airlines in the
country must contend with a truly suffocating piece of government
regulation that hinders their growth.
Although Indian tech start-ups seem to be doing well, start-ups in most other sectors generally face an uphill battle against protectionist policies and a highly corrupt government.
As flying goes, India's domestic routes are crowded with too many airlines competing for too few routes that can sustain a profit. As a result, no Indian airline actually makes substantial profit from domestic flying.
However, in order for an Indian airline to be able to fly lucrative international routes, they must adhere to the 5/20 rule which require them to have been in business for at least five years and have a fleet of at least 20 aircraft.
Read news in full 22/08/14 Benjamin Zhang/Business Insider
Although Indian tech start-ups seem to be doing well, start-ups in most other sectors generally face an uphill battle against protectionist policies and a highly corrupt government.
As flying goes, India's domestic routes are crowded with too many airlines competing for too few routes that can sustain a profit. As a result, no Indian airline actually makes substantial profit from domestic flying.
However, in order for an Indian airline to be able to fly lucrative international routes, they must adhere to the 5/20 rule which require them to have been in business for at least five years and have a fleet of at least 20 aircraft.
Read news in full 22/08/14 Benjamin Zhang/Business Insider
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