Relying on cashflow from the government is not a reliable foundation for the future. Agreed, injections may be required, but the aim should be to do without.
Agree with pretty much everything you've said
Spirit. Unfortunately, all other carriers in the region are make-work or ego-based projects of their national governments. Those that claim otherwise and flash figures around do some fairly questionable book-keeping. Gulf Air is one of the closest to running as a self-sustaining airline, having said that, it falls short-- not unlike swimming up from the bottom of the Mariana Trench and drowning two feet from the surface.
Unfortunately, fairly unlevel playing field in the region, and IATA and industry watchers warn of the dangers of overcapacity in the region. With the Indian airline industry growing rapidly, traditional sources of revenue are more and more scarce.
It is a pretty difficult business in other parts of the world also. As long as I have my job and the correct amount of money arrives on-time in my bank account, this clam is happy.