India aviation boom hit by safety and profit concerns

India's fast-growing aviation sector is facing safety, regulatory and financial pressure after problems at Air India and IndiGo, the country's two dominant carriers.

An Air India flight from Phuket, Thailand, to New Delhi plunged 300 feet earlier in August, injuring 24 passengers. Initial findings from an investigation are expected in the coming weeks.

The incident has added to scrutiny of Air India after last year's crash of a London-bound Boeing 787 Dreamliner killed 241 people. A separate audit of Air India identified around 100 safety lapses, including seven violations requiring urgent corrective action and recurrent training gaps for Boeing 787 and 777 pilots, according to a parliamentary panel report.

Air India and IndiGo did not immediately respond to AFP requests for comment.

The safety concerns come as Indian airlines face higher costs and pressure on expansion plans. The closure of Pakistani airspace since tensions between New Delhi and Islamabad escalated last year has forced longer routes, while higher jet fuel prices linked to the Middle East war have added strain.

Ratings agency ICRA estimated Indian airlines will lose nearly $4 billion this fiscal year. Air India's losses more than doubled to $2.3 billion in the last fiscal year, while IndiGo has reported losses for two consecutive quarters.

IndiGo last month shut down its wide-body operations, while Air India is reportedly considering delaying deliveries of as many as 500 aircraft.

Air India and IndiGo together account for nine out of 10 domestic airline seats. Indian airlines carried about 167 million passengers last year, more than double the figure a decade earlier, and carriers have ordered about 1,500 aircraft.

Industry figures cited weak regulation, limited competition and high costs as obstacles to the sector's growth. The government said last year that India needed five big airlines, and regulators have since approved plans for two new carriers.