Mumbai: Two new joint ventures by the Tata group, expansion of India operations by foreign airlines, and smaller, regional and short-haul services are behind the mini boom.
Against the grey backdrop of stagnant corporate hiring in the country -- an expected fallout of the economic slowdown - the aviation industry is turning out to be a bright spot in contrast, although many airlines have been posting quarterly losses.
Two new joint ventures by the Tata group, expansion of India operations by foreign airlines, and smaller, regional and short haul services are creating jobs in a sector which, not too long ago, presented a picture of distress, when Kingfisher Airlines collapsed under a debt of Rs. 7000 crore, leaving 5000 employees high and dry.
The increase in FDI to 49 per cent is in part the reason. "FDI in aviation and reduction of fuel surcharge attracted investors despite the slowdown," said independent aviation expert Vipul Saxena. (The union government had appealed to state governments a few months ago to reduce the surcharge and taxation on aviation fuel).
Hiring has already started for Air Asia India, a three-way joint venture between Malaysian carrier Air Asia, the Tatas, and Telstra Tradeplace. And sources said Tata-SIA Airlines Ltd (a joint venture of the Tatas and Singapore Airlines) has plans for hiring in a big way. "These new ventures have come as a relief to the Kingfisher staff, many of whom will now be absorbed, said Saxena.
Read News In Full 30/11/13 Bipin Kumar Singh/Mumbai Mirror
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