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