An investigation into the core underlying problems of India's airlines

O′Connell, John F., Pukezhenthi Krishnamurthy, David Warnock-Smith, Zheng Lei and Chika Miyoshi

Transport Policy, 2013, vol. 29, issue C, 160-169

Abstract: India’s aviation industry promises huge growth potential due to a large and growing middle class population, favourable demographics, rapid economic growth, higher disposable incomes, and overall low air transport penetration levels of less than 3%. However, the Indian Aviation Industry has been going through a turbulent phase over the past several years, facing multiple and prolonged difficulties through which carriers are continuously underperforming financially. After conducting a set of expert interviews backed by a statistical analysis of secondary data, this paper concludes that restrictions on foreign ownership, outdated regulatory policies and overtaxed fuel, overlain by industry wide overcapacity issues are the major contributing factors.

Keywords: Indian carriers; Air transport regulation; Aviation turbine fuel; Overcapacity (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (4)

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DOI: 10.1016/j.tranpol.2013.05.002

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