Budget carriers in India: In short-haul for the long run

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Budget carriers in India


Prospering in India’s aviation market requires patience and discipline



“I AM running a marathon,” says Jeh Wadia, the founder of GoAir, a low-cost Indian airline. “I am not increasing my pace.” In India’s competitive air-travel business, slow-and-steady wins the race, reckons Mr Wadia. GoAir started in 2004, has 19 aircraft and a modest 9.2% market share (see chart). It has seen bigger carriers come and go. Two years ago Kingfisher Airlines, an offshoot of a drinks company, ceased flying, going the way of Air Deccan, Air Sahara and Paramount Airways before it. GoAir may be small but it is profitable, a boast some bigger rivals cannot make.
Air India, the state-owned carrier, is a money-pit. Its latest bail-out, agreed in April 2012, gives it until 2021 to complete a turnaround. It is tough to compete with a rival whose losses are endlessly underwritten, …

Link to article: www.economist.com/news/business/21635004-prospering-indias-aviation-market-requires-patience-and-discipline-short-haul-long?fsrc=rss

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