Of the 638 total big passenger airplanes in Indian skies, 18 Boeing 737 Max aircraft are grounded. That’s bad news, but it dwarfs in the face of the many deep air pockets that India’s aviation sector is facing now.
High aviation fuel prices, rupee depreciation, excessive parking and landing charges, loads of debt and fare wars, even some inefficient operations, have been the millstones around the airline industry. Just last quarter there were indications that the industry was on the verge of a mild recovery, even though the distress is far from over.
Airlines such as Jet Airways, IndiGo, SpiceJet, GoAir and Air India continue to struggle when it comes to financial and operational performances. “Jet’s operating fleet has nearly halved; Air India’s fleet is down by almost 20 per cent, and the 737 MAX grounding is the most unfortunate thing to have happened to the aviation sector. Six airlines that had bid under the UDAN scheme have shut down operations. With all these developments, the passengers will be affected because of lesser number of flights and higher fares. Ticket prices are already costing an arm and a leg on some sectors,” says Mark Martin, founder of Martin Consulting. Read more