Budget carriers have grown so strong in India that they are competing against nearly half the routes flown by traditional full-service airlines. With the industry teetering on a financial precipice, even traditionalists like Air India are giving the low-fare model a closer look. The flag carrier, which is seeking government bailout funds, is under pressure from the top. “Air India will have to go in for a massive cost reduction at every level and will have to do everything possible to ...

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