MakeMyTrip and India’s Airline Situation by Sam Kligman

http://www.businessweek.com/articles/2013-04-18/indias-makemytrip-hopes-for-a-revival-via-smartphones

Apparently American’s airline industry is not the only one that’s hurting. This article points out that many companies in India’s airline industry are having serious trouble. For instance, Jet Airways hasn’t turned a profit in five years. Moreover, Air India, the nation’s government owned airline has six years of losses and $8 billion in debt. But why is this industry having so much trouble? The article hints that is because of the international economic downturn and also because the citizens of many countries like India do not have the Internet capabilities to book flights. It then goes on to address the fact that these issues with India’s infrastructure have negatively impacted Indian e-commerce pioneer MakeMyTrip which shares online ticket revenue with carriers. However, it continues by presenting the company’s sentiment that the worst is over because of the news that the government is pushing a law to open the airline industry and that mobile broadband availability and usage is on the rise. Furthermore, it supports the sentiment using a quote from Google’s Chairman Eric Schmidt regarding the new bandwidth in New Delhi – soon, he said, “this place is going to be rocking.” Overall, I’m likely to agree with this prediction because it is easy to see that the influx of cheap smart phones and broadband access in India will improve both the accessibility of flight information and ability to book flights.

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