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India’s airlines start to cut hard

12-Aug-2008

Reality has started to hit home in India – the days of rapid capacity growth are over, at least for now. The poor results of listed carriers Jet Airways and SpiceJet have shown just how difficult the airline market in India has become. For example, the break-even load factor of Jet Airways’ ‘value-based’ unit, JetLite, hit 111% in the first quarter of 2008/09 (to Jun-08). [1102 words]

Unlock the following content in this report:

Subheadings:

  • Domestic cutbacks flow in weak second quarter
  • International market still growing, but losses mount
  • Freight market improves
  • Boeing increases long-term market outlook
  • Conclusion: A "do or die" environment

Graphs and data:

  • Indian domestic passenger numbers (thousands) and growth (% change year-on-year):Jan-07 to Jun-08
  • Indian airports' domestic vs international passenger movements growth: (% change year-on-year): Jun-07 to May-08)
  • Indian airports' domestic vs international aircraft movements growth
  • (% change year-on-year): Jun-07 to May-08)
  • Indian airports' domestic vs international aircraft movements growth: (% change year-on-year): Jun-07 to May-08)
  • Evolution of 20-year aircraft delivery forecasts for India: Boeing vs Airbus:2000-2019 to 2008-2027
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