80 % of world Air-Lines are running at losses.
* Causes:
Poor Management
High Salary burdens
Low fares & low % occupancy
High fuel cost .
High cost for spares

Our most important strength is reflected in the fact that despite many constraints and difficulties, India's economy has been undergoing a long term acceleration. India grew at an average rate of around 3.7 per cent per year from 1960-61 to 1979-80, and the late Prof. Raj Krishna described this lack luster performance by the catchy phrase "the Hindu rate of growth". Raj Krishna's phrase proved so catchy that the image of India as a poor performer stuck for a long time, even after the facts began to change.

India's growth rate improved significantly in the 1980s to reach an average of 5.8%. This was the period when the first steps at economic reforms were introduced and they clearly had favourable effects on economic growth. The growth rate declined to 5.1% in the first half of the 1990s, reflecting the severe crisis of 1991, but as we know, that crisis led to the introduction of wide ranging economic reforms in the early 1990s which led to further improvement in growth. The growth r ...more