A current analysis on the outlook of the airline industry in India for 2007/2008.
The anticipated growth of the airline industry (specifically passenger air services) in India will be strong in 2007 and 2008 according to our estimates, even as new airlines emerge and even as airports struggle to handle the high volumes.
The author expects the passengers carried by India’s airlines to rise in 2007, growing further in 2008. This continued growth could be attributed to the rising disposable income among Indian citizens and a growing middle class in India who are newly able to afford travel by air for leisure and business.
At the same time, we believe the low-cost market to be the fastest growing sector in the industry. This swell will be driven by aggressive expansion of some currently operating low-cost carriers (passenger airlines operating on low cost structure), the entrance of several new low-cost carriers to the Indian market and low-cost carriers’ continued choice to compete directly with rail travel.
