Indian aviation sector caught in 'perfect storm'

Indian airlines are caught in a "perfect storm" of bigcosts," Kaul told AFP (1) (AppleTalk Filing Protocol)
losses, high debt and falling demand, and need urgentThe file sharing protocol used in an AppleTalk
help from the new government to make themnetwork. In order for non-Apple networks to access
high-flyers again, says an industry report.data in an AppleShare server, their protocols must
The struggling sector was once a vibrant symbol oftranslate into the AFP language. See file sharing
India's economic progress but it has seen its fortunesprotocol. , citing hefty jet fuel taxes.
nosedive nose·dive  n.There is also a need to allow more domestic airlines
1. A very steep dive of an aircraft.to fly internationally to boost revenues, Kaul said.
2. A sudden, swift drop or plunge: Stock prices tookThe Congress-led government should allow foreign
a nosedive.airlines to take equity stakes in domestic airlines to
Noun 1.give them access to fresh capital, he said, but to
..... Click the link for more information. due todraw investment the carriers must clean up their
over-expansion, costly fuel and cut-throatbalance sheets.
competition Cut-throat competition, also known as"Over-aggressive expansion" to grab market share is
destructive or ruinous competition, refers to"partly responsible for the fiscal demise of the
situations when competition results in prices that dosector," the report said.
not chronically or for extended periods of time coverFlagship state airline Air India Air India (formerly
costs of production, particularly fixed costs.Air-India, Hindi: ??? ??????) is the national flag carrier
..... Click the link for more information..of India with a worldwide network of passenger and
"The industry now is at a very critical stage," saidcargo services.  is hurting the most. It's estimated to
Kapil Kaul, India head of the Sydney-based Centerhave racked up 800 million dollars in losses for the
for Asia Pacific Aviation, the consultancy whichpast year and debt of four billion dollars, the report
authored the report entitled Aviation Agenda for Thesaid.
Next Indian Government.Air India, which flies internationally, merged with
Sector losses for the fiscal year just ended in Marchgovernment-run domestic carrier Indian last year to
2009 are expected to nearly double from last yearbecome more efficient but its planes are flying
to 1.75 billion dollars, Kaul said.emptier and passenger revenues are still falling.
That's a fifth of the losses of airlines globally of 8.5Despite this, it still plans to take delivery this year of
billion dollars estimated by the International Air26 new aircraft -- "a significant augmentation
Transport Association.AUGMENTATION, old English law. The name of a
"India?s contribution to this (loss) is significantly highercourt erected by Henry VIII., which was invested
than the two percent of world air traffic for which itwith the power of determining suits and
accounts," said the report.controversies relating to monasteries and abbey
The Indian industry's woes are highlighted by a slumplands.  in capacity when the opposite would be more
in passengers. In April, the number of domesticappropriate," said the report.
passengers fell by 591,000 or 15.2 percentAnd India's two major private airline groups, Jet
year-on-year, the fourth straight month of declines.Airways Jet Airways (India) Ltd. is an airline based in
The figures are a far cry from earlier heady head·yMumbai, India, operating domestic and international
 adj. head·i·er, head·i·estservices. It operates over 330 daily flights to 50
1.a. Intoxicating or stupefying: heady liqueur.b. destinations across the country and 6 overseas.  and
government forecasts that passenger growth wouldKingfisher Airlines Kingfisher Airlines Limited is an airline
run at 25 percent annually until the end of thebased in Bangalore, India. It is a major Indian luxury
decade.airline operating an extensive network to 34
Passenger numbers were expanding by double digitsdestinations, with plans for regional and long-haul
Double Digits was a pricing game on the Americaninternational services. , also have hefty debts and big
television game show, The Price Is Right. Played fromlosses. Jet reported its third-quarter net loss more
April 20, 1973 through May 18, 1973's show, it wasthan doubled to 44 million dollars.
played for a car and used small prizes.  when India'sRationalisation Noun 1. rationalisation - (psychiatry) a
economy was booming. Cheap fares and increasingdefense mechanism by which your true motivation is
affluence among India's middle classes drove aconcealed by explaining your actions and feelings in a
migration from the country's antiquated train networkway that is not threateningrationalization  "is
to planes.inevitable and desirable for the health of the
After the government opened India's skies to moreindustry," said Kaul, who believes India can only
competition in 2004, a clutch of new airlines tooksupport two full-service carriers. He declined to say
flight, revolutionising domestic travel in the country ofwhich should survive.
1.1 billion.But the no-frills airline model offered by carriers such
But then costlier oil pushed up air fares last year,as Indigo Airlines IndiGo Airlines is a private domestic
sending many passengers back to trains.low-cost airline based in Gurgaon, India. It operates
Now the sector has also been hit by a slowingdomestic services linking 14 destinations. Its main
economy triggered by the global financial crisis,base is Indira Gandhi International Airport, Delhi. ,
reducing business and leisure journeys.which has bucked the falling passenger trend, could
"It needs to quickly restructure and the newbe the platform for future growth, he said.
government has to help them reduce high structural