Yes there is a downturn in the industry, but isn't that whats happening the world over?
There is a rush to lump all airlines under the banner of Indian aviation, and paint a doomsday scenario. However, welcome to the concept of market forces. Every airline has its own unique culture and management ethos, which will make or break the outfit when the times are bad. Just as Spice is laying off guys and Fisher is selling a/c, Jet is hiring as we speak with a firm eye on the future. Even Air India is trying to shake off a 30 year stupor.
It certainly does'nt help when we have the "experts" from the newspapers writing up stories to make a buck. Especially infantile are the ones which tend to alarm the public. (5 billion crore losses, pilots falling asleep, failing sobriety tests etc. etc.)
Aviation in India, will go on inspite of the current situation. Its just too big an industry serving over 300 million people. A shake up perhaps, just like everything else in the world at the moment. See what happens by the end of the year. Meanwhile, keep your knickers on and hope.