CAPA India Outlook 2012/13: Critical uncertainty prevails. Possible Air India shutdown

Indian aviation is facing its most uncertain phase in more than a decade. After reporting an estimated record loss of just over USD2 billion[1] in the 12 months ended 31-Mar-2012, India's airlines are facing an equally challenging year ahead. Weak balance sheets, increasing costs, regulatory uncertainty, a sluggish Indian economy and a difficult global environment will continue to pile the pressure on airlines, especially the poorer performing carriers. However, this may in turn create market opportunities to exploit for those that are better positioned. Some of the key highlights of the CAPA India Outlook 2012/13, to be released on 31-May-2012, include:

- Indian domestic capacity growth of 7-8% in FY2012/13, traffic to grow 8-10%

- India's airlines expected to post a combined loss of USD1.3-1.4 billion

- Jet Airways to prosper; major aircraft order expected

- Kingfisher Airlines revival dependent on foreign airline investment