Air India does its bit to get India flying again, as bailout hangs in balance

The explosion in air travel across India was one of the major achievements of the current administration in Delhi, which faces national elections in a few months time. That was until 2008, when record fuel prices, a slowing economy and over-exuberant capacity growth by airlines, led to massive losses for the newly liberalised sector. Airlines responded by ratcheting up fares and taking over smaller price leaders. Travelers responded by going back to trains and buses.

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