The sudden slump in the number of domestic fliers is pushing domestic airlines into the ditch of financial crises. The Indian airlines are already facing financial problems due to surging oil prices. The Indian aviation industry witnessed the 15% decrease in number of domestic fliers. All Indian airlines like Air India, The Kingfisher, Paramount, JetLite have suffered loses.

To cope up with this financial crisis various airlines has adopted different measures. Most of the airlines have reduced the number of flights. For example GoAir has reduced its flights from 561 weekly flights to 800 per month in June. Officials from new Bangalore airport said that the reduction in number of flights could reach upto 10%.

They said, “There has been a decline of about 19 daily flights into Delhi and 16 daily flights into Mumbai. Air Deccan has cancelled or suspended 35 daily flights, JetLite 26 and SpiceJet 21.”

The reduction in number of flights is not enough to compensate the financial loses suffered by airlines. The airlines still have to bear the maintenance charges.

A top official from an airline explained the grim situation faced by various Indian airlines.

He said, "The situation has become so grim that just cutting flights won't help as even if they are on ground, the fixes cost has to be borne. Now whatever was considered as fixed costs — lease rentals and employee, especially pilots' salary — will have to be treated as variable costs." Most airlines are planning to pay their pilots according to the number of hours they fly. The airlines which use planes on the rental biases will have to convince the leasing agency to charge rent according to the number of flight hours otherwise such airlines will go bankrupt.