Indian Aviation on Cloud Nine
The Indian Aviation sector has indeed come a long way- from state-run flights at unaffordable prices to half a dozen airlines vying with each other to woo customers in services and price. What’s more, with some of the airlines operating as discount airlines or low-cost operators, customers can now pick the Airline they can afford. Domestic Airlines In India having a big roll out. Further, the increase in the number of airlines coupled with the emergence of low-cost carriers has led to price wars resulting in Price Reductions. Recent Example was of “Air India, Jet Airways & Go Air ”
More New Airlines Queuing upto “TAKE OFF“. All this would only bring down airfares further. As aifares plummet, more and more travelers who travel by trains are expected to switch to AIR TRAVEL. The potential oppurtunity is huge-
“The number of passengers India’s Airlines carry per annum is what the Indian Railways carries Every Day !”
With the GDP growing above the 6 % level consistently and the boom especially in the software and ITES sector resulting in higher disposable incomes, the Indian middle-class is all set to grow.Even if Airlines are banking on the 250 million strong middle class, which is roughly about the size of the population of Europe, the potential is tremendous. Boeing expects that in the next 20 year’s India would require minimum of 400 Airplanes with an investment of about $ 40 Billion.
Behind this sucess story of growth lurk some important chalenges. Paradoxically, there is a severe constraint of skilled man power like pilots, captains and engineers, etc. while India Inc’s recent ascendancy is the result of the avalaiblity of manpower. Another Challenge is from poor infrastructure that is poised to choke the growth of the sector. Of the avalaible 400 airstrips, only about 60 are in use. The sucess of the discount carriers not only depends on keeping the airfares low, but also in adding new destinations such as small towns. But the absence of the necessary infrastructure in these towns will only hamper the growth of this sector.
The Civill aviation ministry which expects investments of about Rs. 40000 cr to set up the necessary infrastructure, cannot do iton budgetary support alone. so its is the time for the ministry to pull up its socks and put in the place the long pending civil aviation policy, which would clearly spell out the role of private participation to improve the much needed infrastructure.
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