A Comprehensive Analysis of Significant Factors Affecting Financial Health of Commercial Carriers in India

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Debjyoti Goswami, Dr. Sumeet Gupta

Abstract

Airline industry is a highly volatile and capital-intensive in nature. Being highly competitive and prone to multiple internal and external risks makes it more vulnerable to financial failures from time to time. Unlike developed nations, commercial carriers in Indian sub-continent are exposed to additional challenges and risks, forcing many carriers to wind up operations and allowing a few to live on the edge to run their operations with positive cashflows. Managing financial performance and identifying early indicators for distress is extremely important from an airlines’ perspective to avoid possible bankruptcy and closure. In order to have a comprehensive view of financial distress and underlying factors involved, airlines in India need to look beyond the typical financial and operational variables followed by developed countries. This study presents a comprehensive analysis of the significant factors across operations, performance, finance, economy, market, government, political, regulatory and external environment that exert a substantial influence on the financial health of commercial carriers within the aviation industry in India. The aviation sector plays a crucial role in facilitating economic growth and connectivity, making the financial stability of commercial carriers a matter of paramount importance. Through an in-depth exploration of both internal and external variables, this research aims to provide valuable insights into the complex interplay of factors that shape the financial well-being of Indian airlines.

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How to Cite
Debjyoti Goswami, Dr. Sumeet Gupta. (2023). A Comprehensive Analysis of Significant Factors Affecting Financial Health of Commercial Carriers in India. European Economic Letters (EEL), 13(4), 80–94. Retrieved from https://www.eelet.org.uk/index.php/journal/article/view/495
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