Which is the best way to gauge India's passenger aircraft needs? Population or per capita income? About 450 aircraft to serve the traffic.
Analysts say India needs more airlines. Does it? The accompanying table shows how countries with per capita incomes comparable to India's stack up. Most have two or three airlines. The ones that have several don't have anywhere near as many aircraft as India does. Analysts say distances have to be taken into account also. That is true only up to a point, say economists who believe that the capital intensity of an industry has to be kept in mind also. Typically, highly capital intensive businesses, as they mature, become oligopolies with 3 to 5 firms competing in select but not all areas.
India's civil aviation industry has run into trouble despite heavy load factors. The industry is blaming government policies.
Keywords: Passenger aircraft, Population, per capita income, traffic.
Ridiculous, it is not about GDP per capita but total GDP