New Delhi: The Indian skies are getting crowded. With the Tata Sons and Singapore Airlines venture closer to take off — the proposal was blessed by the Foreign Investment Promotion Board on Thursday — flyers will have one more option if they’re looking to fly with a full-service carrier.
By next November they may also be flying AirAsia, whose airline, also in partnership with the Tatas, was approved in March, and which plans to operate in the no-frills space.
India’s Rs 50,000-crore aviation business flatters to deceive. Airlines collectively posted losses of Rs 12,809 crore in FY12 and Rs 9,270 in FY13. Indigo was the sole carrier to have made money in both years. In 2012, low-cost players flew 32.4 million or 60% of all passengers.
On the face of it, the full-service segment looks to be the more difficult to operate in, given how price-sensitive consumers are. Jet Airways, which shares the market more or less equally with Air India, notched up a record consolidated quarterly loss of Rs 996 crore in the three months to September, the lack of pricing power evident from the numbers.
Read news in full 25/10/13 Financial Express
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