It is not going well in the Indian airline sector. Air India boss Raghu Menon says it could happen that half of India's airline could disappear during these economical bad times. He said that Air India has to take care of their money in the future because two other big companies have signed an alliance with each other.
The Indian airlines have to take care with one bad thing after the other. The baddest thing for them was the continuous rise of the fuel during 5 months and for an airline that is a disaster.
The other problem is the falling demand because off the rising ticket prices and the bad situation of the economy. That is why cost cutting is very important.
It will be a challenge for Air India to be a profitable airline in the future, certainly because two other big airline have signed an alliance.
I think it is good from those other two airlines to sign an alliance because they can split the costs and their are a team know, when one airline of the two is in bad papers, the other can help him.
I hope ffor Air India that they can be profitable in the future and that they can compete with the alliance but personnaly I don't think theyy can do. The alliance has more power because they are with the companies and can slit the costs but Air India has to do it al by themself and that will be a difficult job I think.
source: http://news.bbc.co.uk/2/hi/business/7675957.stm
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