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Tuesday, 22 July 2014

Why Bangalore may struggle to become an aviation hub

Mumbai: On July 3, AirAsia's CEO Tony Fernandes said he wants to make Bengaluru an international aviation hub like Dubai. The comment, unlikely backed by a firm operational plan, nevertheless shows AirAsia's ambitious plans for India.
India has so far failed to utilise its potential to become a hub due to policy paralysis and high costs. But Fernandes is hopeful that will change.
The Malaysian carriers's local unit has already shifted a large part of its operations and staff to Bengaluru from Chennai and later has ambitions of flying from there to nearby foreign locations.
Bangalore has already given enough incentive to AirAsia to make the move from Chennai. Last month, it got approval from the Airport Economic
Regulatory Authority to more than halve airport tariffs for what it calls a "home carrier". The discounts are also applicable to the international operaoperations of the carrier. The move is seen as directly helping AirAsia although the airport hasn't specified it.
Read news in full 21/07/14 Anirban Chowdhury/Economic Times

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