Indian Growth Rates To Slow as Airlines Cut Capacity
by Neelam Mathews - March 19, 2019, 8:11 AM With airline seating capacity throughout India down about 20 percent from its peak, the country appears set to lose its standing as the world’s lowest-airfare market. About 100 airliners now sit grounded or out of service, suggesting the aviation sector will almost certainly not see the near 19 percent growth many forecasters projected for this year. The March 10 Ethiopian Airlines Boeing 737 Max crash near Addis Ababa prompted Indian authorities to ground some 13 Max jets flown by SpiceJet and five by cash-strained Jet Airways, an airline that already had grounded 56 airplanes due to financial troubles. Others include GoAir, nine of whose Airbus A320neos await engine spares; Air India, which has grounded 17 airplanes for similar reasons; and IndiGo, which has taken out of service 10 airplanes and cut some 100 flights a day due to a pilot shortage. “Capacity reduction is likely to see annual gro...