Indian carriers are already in the midst of some major financial struggles. We’re starting to see some consolidation (Sahara/Jet, Kingfisher/Deccan). To your point, the real long-term issue is that the infrastructure is a disaster and really limits the route structures. We’ll continue to see consolidation in the coming years. On the plus side, the nutty pricing of early 2007 and 2006 appears to have come to an end.

I’ve been reading about the plans for the T3 at the Delhi airport. They are impressive — on paper. But what do you think of the reality? It seems as if the Indian aviation market is really due for a crash — with current fuel costs I can’t see how they manage to make much money, and they don’t have the free money that the Gulf carriers seem to dip into….