survival of low cost airlines in India
Survival Of Low Cost Airlines In India
Do We Need New Strategies??
Introduction
The liberalization of aviation industry in India has precipitated the boom for domestic & international passenger carriers. The domestic passengers & cargo traffic recorded a growth rate of 20% & 8.5%. The Airport Authority of India manages total 119 airports in the country which includes 7 international airports, 94 airports & 28 civil enclaves. The four airports are under PPP Greenfield airports i.e. Delhi, Mumbai, Bangalore & Hyderabad but the Navi Mumbai project is still under consideration.
Top 5 airports in India handles 70% of passenger traffic of which Delhi & Mumbai together account for more than 50%. The substantial growth of Indian aviation industry is mostly due to low fares offered by low cost carriers like Indigo, Spice Jet, Go Air, Jetlite, Jet Connect & Kingfisher Red. Now scheduled domestic air services are now available from 75 airports as against just 50 earlier & network is increasing because of commissioning of new airports as well as up gradation of airports.
Overview
Prior to 1953, there were 9 private airlines in operation with too many surplus aircrafts & airline industry was sick. There was no competitive environment in the monopolized aviation market. The air transportation operations in India are governed under The Aircraft Act 1934, The Aircraft Rules 1937, The Air Corporation Act 1953, The International Airports Authority Act 1971, The Carriage Of Air Act 1972, The Tokyo Convention Act 1975, The Anti -Hijacking Act 1982, The National Airport Authority Act 1985, The Airports Authority Of India Act 1994 & The Air Corporations Act 1994 (transfer of undertaking & repeal).
The first step towards liberalization was as early as in 1986 when private airlines were allowed to operate charter & non- scheduled services to all authorized airports under the Air Taxi Scheme & were also permitted to decide their fares & flight schedules. After
Do We Need New Strategies??
Introduction
The liberalization of aviation industry in India has precipitated the boom for domestic & international passenger carriers. The domestic passengers & cargo traffic recorded a growth rate of 20% & 8.5%. The Airport Authority of India manages total 119 airports in the country which includes 7 international airports, 94 airports & 28 civil enclaves. The four airports are under PPP Greenfield airports i.e. Delhi, Mumbai, Bangalore & Hyderabad but the Navi Mumbai project is still under consideration.
Top 5 airports in India handles 70% of passenger traffic of which Delhi & Mumbai together account for more than 50%. The substantial growth of Indian aviation industry is mostly due to low fares offered by low cost carriers like Indigo, Spice Jet, Go Air, Jetlite, Jet Connect & Kingfisher Red. Now scheduled domestic air services are now available from 75 airports as against just 50 earlier & network is increasing because of commissioning of new airports as well as up gradation of airports.
Overview
Prior to 1953, there were 9 private airlines in operation with too many surplus aircrafts & airline industry was sick. There was no competitive environment in the monopolized aviation market. The air transportation operations in India are governed under The Aircraft Act 1934, The Aircraft Rules 1937, The Air Corporation Act 1953, The International Airports Authority Act 1971, The Carriage Of Air Act 1972, The Tokyo Convention Act 1975, The Anti -Hijacking Act 1982, The National Airport Authority Act 1985, The Airports Authority Of India Act 1994 & The Air Corporations Act 1994 (transfer of undertaking & repeal).
The first step towards liberalization was as early as in 1986 when private airlines were allowed to operate charter & non- scheduled services to all authorized airports under the Air Taxi Scheme & were also permitted to decide their fares & flight schedules. After
References: Low cost carriers – a global prospective – Dr.P.C.K.Ravindran Low cost airlines in India – Kunal Jain, Manik Nangia, Manish, Mehak Monga, Nimisha Goel Aviation industry in India Challenges for low cost carriers – Shashi Sharma Wikipedia – low cost carrier