India’s aviation market is poised to grow and become “sophisticated” in the next five years, with its sustainability unaffected by the grounding of Jet Airway , the country’s biggest private sector carrier, analysts said.
The Jet Airways crisis can be attributed to the advent of “efficiently run” low-cost carriers (LCCs) and is not unique because many legacy carriers in other countries have shut down, analysts told ET during the IATA annual general meeting in Seoul last week.
They said the Indian market is difficult because of high fuel costs, poor infrastructure, complex regulations and low yields, but is set to grow over the next five years, allowing both LCCs and full-service carriers to make money.
Jet’s collapse is attributed to high costs in the Indian market and the airline’s inability “to change with the times” to compete with LCCs in India’s regulatory environment. Read More