Indian Airlines face disaster as problems swirl through industry

Indigo and Go Air are suffering from issues with their A320neo engines. SpiceJet is suffering from the never ending MAX grounding. Air India is facing closure if privatisation fails for a second time.

Rampant fare wars are depressing incomes far below costs, marketing and advertising costs are ridiculously high per ticket sold. Infrastructure costs and management costs are disproportionately high generally.

On top of that the airlines are deeply affected by even the slightest oil price fluctuation, which can erase their already tiny margins in a minute.

Government is warning airlines that they are risking disaster with their predatory pricing and it can’t go on without some sort of correction – the sort that will see one of the airlines collapse.

Investors are now becoming worried too. Share prices are dropping and sell offs of airline shares are making the business unattractive.

India’s airlines are on a knife edge and they seem to have no idea how to get off of it.