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Flights of Indian Aviation – An Overview
 

Aviation is witnessing a sea change in India, as is evident in the slew of policy initiatives and the blooming of the no frills segment. Travel World reigned together some of the industry’s finest minds to arrive on a perspective for the uncharted future. Civil aviation minister’s reform of domestic aviation has completely changed the picture of aviation in the country.

The development of some the 400 airports in the country enlisting private participation was a right step in speeding up the evolution of commercial aviation in India. As much as 2, 400 additional flights adding up to half a million seats from December to March speak volume of what liberalization of the sector can do. The verdict on the birth and subsequent maturity of low cost carriers (LCC) still has its jury out. The low cost carrier (LCC) phenomenon continues to rule the skies, as India’s full service carriers find it increasingly difficult to hold-fast on their share of the domestic market.

Hence the question, what will be the role of national carriers in such a scenario. Fleet expansion, network augmentation and additional of a new brand will be the answer to take on increased competition. While the battle between Indigo, Jet airways and Vistara over the second largest domestic carrier’s slot intensifies, new low-cost entrants have cornered almost 15% additional market share. Even in the international segment, the LCCs are increasingly gaining a chunk of the pie with Indigo. Jet airways air India reaching new overseas destinations.

The market share of full service carriers has come down progressively Air India market share fell from 25% to 20% (approx)  Indigo has made the largest chunk of business with spice jets service losing business. Analysts feel Indigo’s with larger Airbus-A320s and Boeing -737s will hold aviation business in the good standing.

According to Centre for Asia Pacific Aviation (CAPA) Indian Subcontinent & Middle East CEO Kapil Kaul, the LCCs are going to corner 50% market share within the next two years. As per CAPA projections, low cost carriers will dominate with 60-70% share of the market. Full service carriers would have to equally serve both International and national markets to remain relevant in a five year scenario.

Another LCC Spice Jet has increased its market share from 6% to 8% during the current moths.

In the international sector, the international Indigo Jet airways have increased their market share progressively with good service. Spice Jet is a bit behind in international operations. Now Air Asia is giving good affordable international connections in Asia Region.

Domestic air travel in India is predicted to grow 30 percent over the next five years. Boeing has raised its 20 year market forecast for India for aircraft purchases from US$ 25 billion to US$ billion. Both Airbus and Boeing are waiting for the next big order, expected from Air India. The airline is evaluating medium and large capacity aircraft and it’s expected to order 50 wide-body jets, worth almost US$ 5 billion at list prices.

The aviation sector is likely to see the launch of many new airlines, including Air Asia Vistara and many new Regional airlines. Premier Airways is formed by a group of ten NRIs in the US. The airline will be based in Chennai and is expected to start operation.

Aircraft manufacturer Airbus said, “India is one of the world’s most promising markets and it is predicted that 100 million new urban middle class consumers will become potential air travelers and it has proved right.” 

 

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