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Indian aviation spinning out of control; fare war slams yield by 50%

9-Feb-2009

India’s airline industry appears set for another crisis this year, if the fierce fare war, launched by the country’s full service airlines at the start of Jan-09, extends for much longer. In this Perspective, The Centre for Asia Pacific Aviation’s (CAPA) CEO Indian Subcontinent & Middle East, Kapil Kaul, reviews the current landscape and outlook for the remainder of 2008. [752 words]

Unlock the following content in this report:

Subheadings:

  • Yields down by 40-55%
  • Full service carrier market shares ease
  • Capital raising difficult; USD1.6 billion loss likely
  • Outlook: Spinning out of control

Graphs and data:

  • Indian airline domestic market shares: 2006 to 2008
  • Indian domestic market share (%): 2008
  • Indian airline domestic market shares: 1Q08 to 4Q08
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