AirAsia’s decision to review its India operations signals severe stress in aviation sector
NEW DELHI: Budget carrier AirAsia’s decision to review its India operations at a time when airlines are showing some signs of revival indicates that India will continue to remain a difficult market with minimal margins for many players in the aviation sector.
“India’s leading carrier IndiGo now control 55-60 per cent of domestic market, leaving very little for smaller players such as AirAsia and GoAir. Cut throat competition and price war among carriers has had previously led to the closure of few established players,” says a leading aviation analyst requesting anonymity.
