INDIA is probably the only country where its aviation industry is been registering positive growth year-on-year but its airlines are making huge losses. According to a forecast made by Centre for Asia Pacific Aviation (CAPA), Indian airlines are expected to make a record loss of US$2.5 billion to US$3 billion in the year ending March 2012. Out of that, Air India alone will account for more than half the total losses. CAPA also estimates that Indian carriers need an immediate infusion of US$2.5 billion to keep their operations from collapsing.
On the other hand, Indian Civil Aviation Ministry’s Vision-2020 documents predict that the growth of aviation sector has potential to absorb up to US$120 billion of investment. The country’s fleet size of commercial airlines is expected be approximately 1,000 aircraft, whereas domestic passenger numbers could reach 150-180 million by 2020.
INDIA is probably the only country where its aviation industry is been registering positive growth year-on-year but its airlines are making huge losses. According to a forecast made by Centre for Asia Pacific Aviation (CAPA), Indian airlines are expected to make a record loss of US$2.5 billion to US$3 billion in the year ending March 2012. Out of that, Air India alone will account for more than half the total losses. CAPA also estimates that Indian carriers need an immediate infusion of US$2.5 billion to keep their operations from collapsing.
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