Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1064950 | Transport Policy | 2013 | 10 Pages |
•This paper examines the causes of poor performance among India’s incumbent carriers.•Expert views were triangulated with reliable secondary data analysis.•The primary causes are determined and possible solutions discussed.
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backed by a statistical analysis of secondary data, this paper concludes that restrictions on foreign ownership, outdated regulatory policies and overtaxed fuel, overlain by industry wide overcapacity issues are the major contributing factors.