Airlines Industry in India could see consolidation: IATA

Feels high airport tariffs may restrict growth in Aviation sector

Travel News
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The Indian airline industry will witness consolidation this year as local carriers brace up for a fifth consecutive year of losses, according to global airline trade body International Air Transport Association (IATA).

“With load factors at 75% and such weak financial condition, some sort of consolidation or exit of capacity is called for,” said Brian Pearce, IATA’s chief economist as per a report in Mint by Tarun Shukla.

Local airlines, including Air India Ltd, Kingfisher Airlines Ltd, Jet Airways (India) Ltd, SpiceJet Ltd and GoAir (India) Ltd, are expected to lose a combined $2.5 billion in the year to 31 March, according to the Centre for Asia Pacific Aviation. 

Pearce said he can’t remember the last time India’s airline industry contributed to profits for the Asia-Pacific region, which is tracked by IATA for its global forecast on the airline industry’s financials. “It’s difficult to predict when profits will appear, that’s really hard to say. But I am sure they will come,” he said.

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