The ministry of civil aviation (MoCA) recently granted no-objection
certificates (NOCs) to six new airlines: three national and three
regional. The country already has seven airlines: IndiGo, Jet Airways,
Air India, SpiceJet, GoAir, Air Costa and AirAsia; with Tata-SIA’s
Vistara expected to take to the skies in October, is the party getting a
little too crowded?
Far from it. The number of airlines in India is low when compared with the US (104 airlines), Canada (61), Russia (37), China (40), Indonesia (26), Australia (23), the UK (20) and Brazil (18). In terms of fleet size, India has just around 400 aircraft, mostly single-aisle. In contrast, just the Big 4 in the US (American, Delta, United and SouthWest) have over 3,000 aircraft; and the Big 3 in China (Eastern, Southern and Air China) around 1,200. That’s the scale of opportunity that beckons India, if we get our act right.
Passengers love new airlines. So do airports, cargo-shippers, hoteliers, aircraft manufacturers, oil companies, etc. Competition brings greater choices, efficiency and customer focus. It helps reduce airfares, airline arrogance and the risk of cartelisation. This also highlight the Indian government’s intention to focus on larger issues of aviation growth, safety and security; and quit playing God. But aren't we creating over-capacity?
Read news in full 21/08/14 Financial Express
Far from it. The number of airlines in India is low when compared with the US (104 airlines), Canada (61), Russia (37), China (40), Indonesia (26), Australia (23), the UK (20) and Brazil (18). In terms of fleet size, India has just around 400 aircraft, mostly single-aisle. In contrast, just the Big 4 in the US (American, Delta, United and SouthWest) have over 3,000 aircraft; and the Big 3 in China (Eastern, Southern and Air China) around 1,200. That’s the scale of opportunity that beckons India, if we get our act right.
Passengers love new airlines. So do airports, cargo-shippers, hoteliers, aircraft manufacturers, oil companies, etc. Competition brings greater choices, efficiency and customer focus. It helps reduce airfares, airline arrogance and the risk of cartelisation. This also highlight the Indian government’s intention to focus on larger issues of aviation growth, safety and security; and quit playing God. But aren't we creating over-capacity?
Read news in full 21/08/14 Financial Express
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