Modi govt aims to prevent collapse of aviation industry

OVER-REGULATION is just one challenge facing the Indian aviation industry. It also struggles with an infrastructure shortage as well as high fuel taxes and airport charges.

But a new government helmed by Prime Minister Narendra Modi is seeking to do away with archaic rules that have contributed to an onerous industry environment where all Indian carriers, save IndiGo, are in the red.

In FY2015, Indian carriers are expected to post collective losses of US$1.3 billion to US$1.4 billion, although this would represent a narrowing from the US$1.7 billion in losses for FY2014. Depreciation in the Indian rupee against the greenback last year did not help, although the currency has picked up slightly this year.