NEW DELHI: There is a popular saying in the corporate world, “if a billionaire wants to become a millionaire, he should start an airline”. This saying holds very true in Indian market as well. Aviation is not an easy business to crack, especially in a market which is heavily regulated such as India. High jet fuel prices, numerous taxes, cut throat competition and difficulty in availing finance make this business unviable for many.
Despite these challenges, the Indian aviation sector continues to attract new players. Tatas, which is already a key player in the market with Vistara and Air Asia, will now be looking to revive Air India, which it acquired from the government of India. Billionaire investor Rakesh Jhunjhunwala is entering the sector with his Akasa Air, as also Jet Airways is set to restart operations. Would the new (re)entrants change the fate of the sector in the country?
