From Slow to Bad to Worse

It first starts to slow then a market gets bad before it gets worse. The Indian aviation market is already slowing down and could soon get bad. The ATF prices are through the roof and when they make up 45% of the operational cost, you know things are getting bad. All airlines are already operating under losses, and with the slow down in the growth of passenger traffic, they are all pruning their routes. Some airlines are late in paying their airport dues as well. The civil aviation ministry is hence considering to remove the five year in-operation rule to allow the younger airlines to fly overseas, as airlines have higher yield on long-haul international flights (not to mention that they are more attractive for investors). Fasten your seat belts folks if the ATF prices do not let up soon there will be major turbulence ahead.