India’s aviation industry is at a critical juncture following years of heavy losses, analysts say. But there is still much to be done amid a turbulent operating environment if airlines are to soar to profitability.
A new carrier launched by Singapore Airlines and the Indian conglomerate Tata, called Vistara, took to the skies this month. This comes as SpiceJet, the Indian budget airline, is struggling to stay afloat, prompting fears that it could follow the debt-laden Kingfisher Airlines into collapse.
It all adds up to a “critical juncture”, according to the industry research body Capa Centre for Aviation.
“After facing a constant stream of economic, regulatory and structural challenges that has resulted in India’s airlines losing a combined US$11 billion over the last eight years, Indian aviation could be on the verge of entering a new era of profitable and sustainable growth”, it says.
“But this is by no means a certainty. Falling oil prices and improving economic conditions provide a favourable backdrop, but all of the key stakeholders will have to play their part for the sector to recover and thrive.”
Capa adds that the government will have to deliver on promises of removing red tape, while “industry players will need to learn to operate in an open and competitive environment and allow vested interests to take a back seat.
17/01/15 Rebecca Bundhun/The National
A new carrier launched by Singapore Airlines and the Indian conglomerate Tata, called Vistara, took to the skies this month. This comes as SpiceJet, the Indian budget airline, is struggling to stay afloat, prompting fears that it could follow the debt-laden Kingfisher Airlines into collapse.
It all adds up to a “critical juncture”, according to the industry research body Capa Centre for Aviation.
“After facing a constant stream of economic, regulatory and structural challenges that has resulted in India’s airlines losing a combined US$11 billion over the last eight years, Indian aviation could be on the verge of entering a new era of profitable and sustainable growth”, it says.
“But this is by no means a certainty. Falling oil prices and improving economic conditions provide a favourable backdrop, but all of the key stakeholders will have to play their part for the sector to recover and thrive.”
Capa adds that the government will have to deliver on promises of removing red tape, while “industry players will need to learn to operate in an open and competitive environment and allow vested interests to take a back seat.
17/01/15 Rebecca Bundhun/The National
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