Indian airlines soar but experts warn of turbulence ahead
SpiceJet, India’s fourth biggest airline with a 13% market share, said Friday it was buying up to 205 Boeing planes worth $22 billion to fuel a major expansion of its domestic operations. Photo: Ramesh Pathania/Mint
New Delhi: A major acquisition by Indian budget airline SpiceJet this week underscored the vast potential of the world’s fastest-growing aviation market, but experts say woefully inadequate infrastructure and high operating costs could threaten the industry’s rapid expansion.
India’s burgeoning middle classes are taking to the skies in ever greater numbers, with passenger growth of 20% in 2015 according to industry body IATA—nearly double China’s 11% increase over the same period.
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