India’s airlines face fare drop, profit delay on foreign routes

International airlines are dumping capacity on Indian routes, says Naresh Goyal, chairman of Jet Airways Mumbai: An increase in the number of flights to and from India by global airlines is resulting in a drastic drop in international air ticket prices, which, in turn, will potentially delay break-even for the overseas operations of domestic carriers, say airline executives and sector experts. (Click below to listen to staff writer P. R. Sanjai in conversation to Rahul Sharma) Airline operators such as Germany’s Deutsche Lufthansa AG, Singapore Airlines Ltd, Cathay Pacific Airways Ltd and British Airways Plc. are increasing flights to and from India as also reducing fares in an attempt to capture share in a rapidly growing market. India has more than tripled its seat allocation on international routes over the past five years... [read full story]