O'Connell, John Frankie, Krishnamurphy, Pukezhenthi, Warnock-Smith, David, Lei, Zheng and Miyoshi, Chikage (2013) An investigation into the core underlying problems of India's airlines. Transport Policy, 29. pp. 160-169. ISSN 0967-070X

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backed by a statistical analysis of secondary data, this paper concludes that restrictions on foreign ownership, outdated regulatory policies and overtaxed fuel, overlain by industry wide overcapacity issues are the major contributing factors.


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