Outlook 2012: India’s loss-making aviation sector facing its most critical phase in almost a decade

Indian aviation enters 2012 facing its most critical challenges since the advent of the 2004 industry reforms. The paradox of India's airline sector is that it serves one of the world's fastest growing economies and is posting double-digit traffic growth, yet CAPA estimates Indian carriers combined will lose USD2.5 billion in the 12 months ending 31-Mar-2012. This is on total revenues of just under USD10 billion - a worse result even than in FY2008/09, when traffic was declining and fuel prices spiked at USD150/barrel. In the domestic market, India's airlines lose USD25-30 every time a passenger boards an aircraft. This situation has prompted unprecedented intervention by the Prime Minister, who has outlined a 12 point agenda upon which the Ministry of Civil Aviation must report every month.

TO ORDER the CAPA India Aviation Outlook 2012, which will be released on 15-Jan-2012, please download the order form attached top left or for more information contact Shuchita Gupta on sg@centreforaviation.com or +91 11 2341 4440. The form outlines special discounts for CAPA Members.