Ever expanding airline business


We have given the title to this article and you may be wondering as to to which country this is applicable. The first answer is ‘For the world’ followed by India’. The market potential and the growth rate seem to be so high that every business house worth the name are plunging into it.

There was a time when traveling was the prerogative of Air travel was that of rich business men oe rich people. Air travel it was believed is more common to developed countries and not for countries like India. In the last decade things have changed due to emerging economy of India and even foreign airlines ventured tying up with the Indian partners. Several players in the Airline Business led to competition paving the way for low cost Airlines in India which earlier it was unheard of in the country, The airline ticket costs if purchased in advance with a specific date of travel are so low that even the Indian Railways started wooing passengers for their upper classes.

Aviation analysts say about $200 million are going to be pumped into the industry by three new players who are likely to make their debut in the next few months.

That’s not all. Several other airlines, are exploring the scene and have evinced keen interest in starting operations by the end of the next year. Taken together, all this means a great degree of interest.

There are reasons for this. More than two-thirds (69.9%) of passengers, who arrive at the busiest airport of the country in Mumbai are domestic passengers. And the busiest domestic sector—the Mumbai-Delhi sector—grew by 50% last year. “Though rising oil prices may push many airlines towards losses this year, there has been no dearth of investments in the aviation sector.â€? An analyst said. The orders placed for aircraft in 2005–$30 billion give an idea of what he is talking about.

With the passenger traffic expected to hit the 30-million figure in 2006-’07 industry insiders say they are not surprised at the line up of new players.

And, not surprisingly, all are low cost airlines and most of them got the sanction to start scheduled operations a few years back Of all the names, analysts expect at least three to be there—up on the display boards in at least half a dozen airports—by the end of the year .

Though the infrastructure problems remain, it is not enough of a dampener. There are so many other options if one sector is saturated said Chief of one Airline.

The overcrowded skies and the dearth of parking bays have also prompted efforts to improve infrastructure.

But, if industry analysts are to believed, the current show is only trailer; they expect the real action to happen only by 2009. “Infrastructure in the south will be ready by then with new airports at Bangalore and Hyderabad ready. Mumbai and Delhi airports, too, will be equipped to handle more traffic and the development of 35 airports at non-metros will also be complete,� Centre for Asia Pacific aviation (CAPA)’s chief said.

The potential which could not be imagined in India has raced ahead pf many countries. The competition will be healthy benefiting passengers with low cost Air travel without any compromise in service.