India’s Airlines Face Huge Losses
Mar 14th, 2008 | By Jared BlankIn case you thought that the rest of the world’s airlines weren’t facing crippling losses, a new report finds that India’s airlines lose an average of $20 on every passenger. Yes, you read that correctly. Keep in mind that average airfares are under $100 each way, and you’ll see that it’s a gigantic mess. A spate of consolidation there has already started to help, as Air Deccan (which formerly charged Ryanair-like fares) has upped its prices in the wake of its acquisition by Kingfisher. Other low fare carriers such as SpiceJet, GoAir and IndiGo have also raised their bottom prices in a move to stave off insolvency.
interesting.
Given the price of oil, I’ve always wondered how Indian airlines made any money. Given, with the dollar/rupee rate the price of oil may not have risen so much in India during the last year, but it still has to be large component of their cost structure.