Has India’s airline industry finally turned a corner? Possibly.
According to a new report from CAPA, the centre for aviation, total loss made by India’s airlines was “only” $1.65bn in the fiscal year ended this March. While that’s still a big loss, it’s a marked improvement from the $2.28bn loss recorded in the previous 12-month period.
Jet Airways shares soared 7 per cent in Mumbai on Monday on a report that the airline was getting close to finalising a proposed tie-up with Etihad Airways, the Gulf carrier.
Mint newspaper said Jet would soon seek regulatory approval to alter its ownership structure to permit a stake sale to Etihad. If it goes ahead, the deal would be India’s first big foreign investment to come from prime minister Manmohan Singh’s recent economic reforms, which include a move allowing foreign carriers to buy 49 per cent of an Indian airline.