The nascent recovery in India’s airline industry is under threat as rising costs and seat capacity combine with a crippling lack of airport infrastructure to hobble growth prospects.
India’s carriers are likely to report combined losses of as much as $380 million to $450 million in the year to March, 2018, according to a recent estimate from the Center for Asia Pacific Aviation, a Sydney-based consultancy.
Meanwhile, fleet expansion plans may be hit given the shortage of landing and parking slots at airports, say observers. That means airlines would be unable to take advantage of the robust growth in passenger traffic.
“It will be difficult (for airports) to accommodate the newer planes. Most of the deliveries will be delayed,” said Jeet Ghosh, an analyst with Kolkata-based research firm Stewart and Mackertich.
Less than a year ago, India’s airlines seemed on the verge of a turnaround as low fuel prices enabled steep discounts on fares, stirring a boom in passenger numbers and in revenue. Rayshawn Jenkins Authentic JerseyShare This