Monday, November 24, 2025 | 07:44 PM ISTहिंदी में पढें
Business Standard
Notification Icon
userprofile IconSearch

Why do Indian airlines struggle to take off despite high demand growth?

The truth is that the aviation sector has been weakened thanks to a combination of errors by both the private sector and, crucially, the government

Airlines stock photo
premium

Airlines stock photo

Mihir S Sharma | Bloomberg
Anyone puzzled by how the Indian economy manages to grow swiftly while somehow failing to be prosperous could do worse than look at the state of India’s airlines. Over the past four years, passenger growth in India has been rapid: The number of flights taken has increased between 15 and 20 percent per year. Demand growth this year is likely to be the highest in the world. Yet the industry itself hasn’t benefited. Almost every Indian airline is struggling.

Consider Jet Airways Ltd., the oldest private airline in India. It’s suffered losses for three consecutive quarters now; its cumulative current liabilities