News Summary: Airlines bet on India despite losses
NEXT ARRIVALS: India has become a hot ticket for international carriers since opening its airline industry to foreign investors last year. In recent months, Abu Dhabi’s Etihad Air, Malaysia-based AirAsia and Singapore Airlines all signed deals or signaled plans to enter the India market.
HEAVY BAGGAGE: The potential of a giant market comes with a catch: Airlines in India are vastly unprofitable thanks to sky-high costs and cut-throat competition. Indian airlines reported combined losses of $500 million last quarter alone.
NOW BOARDING: The newcomers are lured by a seemingly limitless potential in a vast country of 1.25 billion people. The number of airline passengers is growing by 10 to 20 percent annually and is expected to triple to some 450 million trips per year by 2020.