TOKYO -- India's airline industry finally had some good news with the entry of AirAsia and Singapore Airlines into the market. But with six companies expected to make inroads into the country this year, there are signs that another price war is on its way.
Airlines are already slashing ticket prices and stepping up their service, and the Indian government is reviewing regulations for entry into the international flight business, which have been the target of heavy criticism. A number of issues remain unaddressed, however, including taxes on jet fuel and airport charges, both said to be the highest in the world. Whether India's airline industry will be on track for solid growth hangs in the balance.
