India’s airlines on the ropes
India’s cash-strapped airlines continue to struggle.
National carrier Air India is set for a government infusion of funds that come with stringent conditions, including a ban on ordering new aircraft other than the Boeing 787s.
The government believes Air India can become profitable by 2018, at which time it is being speculated that the government will seek to sell off the airline to private interests to get its money back.
Meanwhile, auditors for Jet Airways have warned that the company needs to raise money in order to meet its obligations and fund JetLite, its loss-making subsidiary.
Jet said it is confident of getting equity soon. It plans to raise US$300 million in sale and leaseback of 40 aircraft owned by the company.
India’s domestic airline industry is facing turmoil after Kingfisher, the second-biggest carrier, cancelled recent flights due to a severe cash crunch and a dispute with lessors, which own most of its aircraft.
Surging fuel costs and severe competition have added to the airlines’ woes.
The sector is expected to see unprecedented losses of US$2.5-3 billion this year, a Centre for Asia Pacific Aviation report has said.
Ian Jarrett
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Singapore to forbid entry to undesirable travelers with new no-boarding directive
Euromonitor International unveils world’s top 100 city destinations for 2025