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Subcontinent flag carriers in trouble

Despite the recent drop in the price of oil, the Indian Subcontinent’s flag carriers are in serious trouble. Shackled with low productivity levels and ageing fleets from years of neglect by their government shareholders, high fuel prices magnified the problems at Air India, Pakistan International Airlines (PIA), Biman Bangladesh Airlines and SriLankan Airlines. The four airlines reported combined losses of approximately USD715 million in the 12 months ended 31-Mar-08.

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