The International Air Transport Association (IATA) has suspended India's Kingfisher Airlines from its account settlement system due to non-payment of fees, dealing a fresh blow to the carrier as it seeks funds to stay aloft. http://news.airwise.com/story/view/1331122862.html
I'm sure there will always at least be a single state-run carrier in the worst case scenario. Won't necessarily be a well-run carrier, but there will be one.
India's aviation minister warned Kingfisher Airlines that its license might be cancelled if safety norms and financial viability conditions are not met, in the latest blow to the beleaguered carrier. http://news.airwise.com/story/view/1332244425.html