Why India's airlines keep struggling to take off? - Letsdiskuss
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abu hanif

Student | Posted 03 Dec, 2018 |

Why India's airlines keep struggling to take off?

Kirati Kreations

Business Head at Kirati Kreations | Posted 07 Dec, 2018

Many people are confused about how Indian businesses develop rapidly & Indian airlines are facing difficult situations. Over the last four years, passengers have grown in India rapidly. The number of flights have grown to 15-20 percent per year.


Demand has grown in the recent years yet the airlines industry in India is not earning enough profits & is significantly suffering losses. Currently, Jet Airways Ltd faced severe losses. Jet Airways has current liabilities have almost $ 2.2 billion. The airline company is struggling to pay salaries & other debts. SpiceJet Ltd has also been facing losses since last 20 years. When the prices of fuels rise, the airlines face huge losses. Indian airlines make losses when the currency depreciates. Aviation industry is very famous for several financial crisis. There are many reasons more that why an airline faces tremendous losses. Also, sometimes they have to hike the ticket prices during season time or festive seasons. Government intervention also affects the growth & development of the Indian airline sector. One of the main step to prevent losses will be connecting the city & villages. This will attract more tourists & people will be more interested to migrate for work & educational purposes. Certain steps must be taken by the companies to make profits in the long run.