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While passengers are frustrated, so are airlines, which are starting to lose money despite brisk demand. The problem? Air travel has blossomed so quickly in India that the country's superannuated airports have been overwhelmed. After the government opened India's skies to greater competition four years ago, the annual...

Author: /time Magazine | Title: Altitude Sickness | 5/3/2007 | See Source »

Indeed, air carriers find themselves in a peculiar bind. Demand is high: the number of domestic air travelers is forecast to grow by at least 25% a year through 2010, according to Sydney-based Centre for Asia Pacific Aviation (CAPA), an industry consultancy. Yet due to the air-transportation system...

Author: /time Magazine | Title: Altitude Sickness | 5/3/2007 | See Source »

The result: industry consolidation amid plenty. In March, the government approved a long-planned merger between state-owned carriers Air India and Indian Airlines; meanwhile, Jet Airways, the country's largest full-service carrier, is buying rival Air Sahara for $340 million. The mergers are "an attempt by players to...

Author: /time Magazine | Title: Altitude Sickness | 5/3/2007 | See Source »

That's certainly what the Indian government hopes will happen by combining Air India, which flies mainly internationally, and Indian, which concentrates on domestic routes. The state-run carriers have been losing market share to better-managed private airlines for years. India's Minister for Civil Aviation, Praful Patel, says...

Author: /time Magazine | Title: Altitude Sickness | 5/3/2007 | See Source »

Further consolidation is likely. India, which has 13 airlines today, will eventually have just two or three full-service carriers and three or four budget airlines, predicts Kaul of CAPA. Their health may depend on how quickly planned airport improvements are completed. A new airport is scheduled to open in...

Author: /time Magazine | Title: Altitude Sickness | 5/3/2007 | See Source »

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