Airline Industry is influenced by n. of factors such as fuel price fluctuations, high fixed costs, the strong influence of the external environment and the excessive use of marginal costs by carriers. Recessions in the industry tend to last longer, while recovery periods are generally shorter. In the last nine years it is observed that the industry has been making losses for five years and during the profitable years the margins were lower. The airline industry is extremely sensitive to external events such as wars, economic instability, government policies and environmental regulations. Evolution of Airlines Industry in India:- Civil aviation took root in India in December 1912 with the launch of the first domestic air route between Delhi and Karachi. In 1915, India's first airline, Tata Sons Ltd, started a regular airmail service between Karachi and Chennai. In 1953, the government nationalized the airline industry, enacting the Air Corporation Act. Subsequently, the operations of nine existing airlines were transferred to two new companies - Air India International and Indian Airlines - creating a monopoly that persisted until 1993. In 1994, with the repeal of the Air Corporations Act, private carriers such as Jet Airways were allowed to operate scheduled services, subject to meeting certain criteria. However, some operators failed to sustain the business and exited the business in 1997. The operating environment of the domestic airline industry underwent a substantial change between 1997-98 and 2011-12. leadership and strategic direction, which has kept the industry grounded. The industry was simultaneously over-regulated and under-managed. No new entrants were admitted... half the paper ......r cent year-on-year at 4.7 billion km over the same period. As supply has outpaced demand, PLFs have fallen about 300 basis points year over year, reaching 77% in 2011-2012 compared to 80% a year ago. The airline's fleet size increased to 13 aircraft in 2011-2012 from 10 aircraft a year ago thanks to the addition of 3 new aircraft. The airline uses Airbus A320-200 aircraft for regional domestic routes. Given the requirement of a minimum of 20 aircraft to start international operations, GoAir is currently not qualified to fly abroad. Go Air is expected to see its fleet increase from 13 to around 20 aircraft over the next 2-3 years, followed by the first of its 72 A320neos on order starting in 2017. The company hasn't been too aggressive with market share; instead it focused on reducing costs and improving operational efficiency.