India's airline industry is a mess. Taxes are sky-high, infrastructure is poor and profit margins are razor thin. A string of carriers have gone out of business, and many others are struggling to stay afloat.
Yet the big winners might be price-conscious consumers -- and any carrier strong enough to survive the price wars that have made India the cheapest place to fly on Earth.
Consider this: In India, airlines charge an average $10.20 to travel 100 kilometers, according to a survey by GoEuro. Air travelers in China pay twice as much to go the same distance, and Brazilians pay four times more. Even India's rail lines demand a higher price per kilometer.
The airlines would like to charge more, but they are locked in a race to capture market share -- sometimes operating flights at a loss. Even Air India, the state-owned recipient of seemingly endless bailouts, offers fares that would be more suited to a budget airline.
14/01/15 Kunal Sehgal/KSPRabc33
Yet the big winners might be price-conscious consumers -- and any carrier strong enough to survive the price wars that have made India the cheapest place to fly on Earth.
Consider this: In India, airlines charge an average $10.20 to travel 100 kilometers, according to a survey by GoEuro. Air travelers in China pay twice as much to go the same distance, and Brazilians pay four times more. Even India's rail lines demand a higher price per kilometer.
The airlines would like to charge more, but they are locked in a race to capture market share -- sometimes operating flights at a loss. Even Air India, the state-owned recipient of seemingly endless bailouts, offers fares that would be more suited to a budget airline.
14/01/15 Kunal Sehgal/KSPRabc33
No comments:
Post a Comment