New Airlines to Fly in Indian Sky

Satisfactory Essays
New airlines to fly in Indian Sky
It is raining airlines now in India. After Tata son’s JVs with Singapore Airlines and AirAsia, smaller players are now aiming for the Indian Sky too. The aviation ministry headed by Ashok Gajapathi Raju has given thumbs up to new six new airlines. Out of six, government has given license to four companies, which had sought permits for launching scheduled, private or charter air operations.

AirAsia India, Ligare Aviation Limited, Quickjet Cargo Airlines, and LEPL projects limited have been granted the Air Operator Permit (AOP) or flying license. Tata-SIA Airlines Limited and Air Pegasus Limited are still in pending cases. While AirAsia has started its operations, Tata-SIA Airlines Limited is a 51: 49 joint venture between Tata Sons and Singapore Airlines, has announced plans to launch flights by September end or October.
Directorate general of civil Aviation (DGCA) is in the process of examining Tata-SIA application. Two other airlines, Air carnival and Zav Airways, have been granted the initial No objection certificate (NOC) by civil aviation industry to start scheduled regional services. Air Carnival proposes to operate in Southern Region, Zav Airways would fly in northeastern and eastern regions. Government has also granted NOC to AirOne Aviation, Zexus Air Limited, Premier Air, and Turbo Megha.
Getting an NOC is the first step towards launching flight operations. Then airline companies have to then apply to DGCA for the AOP, complete all necessary requirements and formalities, and satisfy the aviation regulator of their capability to launch flight operations. With so many Industries entering in India for their Operations, government is planning to connect India to almost all destinations of the world. This will increase number of airports in the country and infrastructure will improve. Hotels and FMCG business will pick up scale and more employment will be created in Aviation sector and other sectors. Country economy will

You May Also Find These Documents Helpful

  • Powerful Essays

    Virgin Atlantic

    • 2789 Words
    • 12 Pages

    The civil aviation industry of world has expanded its wings by letting in private organisations. Privatisation in the domestic and the international circuit can help in foreseeing the future of the aviation industry at a mark up rise, and gaining international recognition. It started eight years back with Open Sky Policy allowing charter flights to operate in domestic market. Today in the year 2000 we saw the code sharing agreement between Air India and Virgin Atlantic Airlines for the DEL- LON sector.…

    • 2789 Words
    • 12 Pages
    Powerful Essays
  • Powerful Essays

    Aviation Industry in India is one of the fastest growing aviation industries in the world. With the liberalization of the Indian aviation sector, aviation industry in India has undergone a rapid transformation. From being primarily a government-owned industry, the Indian aviation industry is now dominated by privately owned full service airlines and low cost carriers. Private airlines account for around 75% share of the domestic aviation market. Air transportation in India is under the purview of the Department of Civil Aviation, a part of the India's Ministry of Civil Aviation and Tourism.…

    • 7650 Words
    • 31 Pages
    Powerful Essays
  • Powerful Essays

    Domestic Airlines in India

    • 1115 Words
    • 4 Pages

    Till the year 2002, the Indian traveler rarely traveled by air as the fares were much higher than those for road and rail travel. But in 2002, the companies offering air travel changed the market dynamics completely. For the first time in the history of the industry, efforts were made to make air travel affordable to a larger section of the population, leading to an unprecedented development in the commercial aviation industry in the country.…

    • 1115 Words
    • 4 Pages
    Powerful Essays
  • Powerful Essays

    Kingfisher Airlines Limite

    • 1082 Words
    • 5 Pages

    With the growing Indian economy and growing middle class, the demand of airline services has gone up in resent time. The estimated size of the airlines of Indian market is approximately $ 129 billion, because growing of middle class it’s with the rate of 18.4% to 29.6% per annum till 2020.The airlines industries in India is driven by heavy compaction between 18 privet and government airlines. Some of the most crucial players are Air India, Air India express, Air mantra, Indigo, Go Air, Jet airways, Deccan 360, Club One Air etc. Though Air India has a very successful because of their reputation…

    • 1082 Words
    • 5 Pages
    Powerful Essays
  • Satisfactory Essays

    Air India is operating across broad international and domestic markets competing with world leading giant airlines as well as local small operators. This lack of clarity on the strategic direction largely dilutes its capabilities and confuses its brand within markets.…

    • 499 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    In December 1999, India's national carrier, Air India (A-I) signed an agreement with Virgin Atlantic Airways1 (VA) by which VA would fly three flights on the Delhi-London route on a code-sharing2 basis with A-I.…

    • 2885 Words
    • 12 Pages
    Powerful Essays
  • Powerful Essays

    Spice Jet

    • 1504 Words
    • 7 Pages

    Ans. After the liberalization policy which was introduced in 1991 the Indian market witnessed the entry of privately owned airlines and LCC. By march 1994, the government had approved six private carriers. However, by 1998 many of these airlines failed. In this closure game, a total of IMR 10 billion of capital was wiped out. By 2003, there were just four carriers operating in India –Air India, Indian Airlines, Jet Airways and Air Sahara - all operating full service models. And private carriers in those days were limited to operating domestic routes only. In 2003 the first LCC entered in India which was the Air Deccan. The entry of this first LCC in India constituted a turning point in Indian aviation industry. It led to a shift from traditional economy and business fares to special discounts, promotional fares, check fares, web fares and corporate discounts. India witnessed a compounded annual growth rate of 19.14% in the air passenger traffic and 9.91 % in cargo movements over the period from 2003-2004 to 2007-2008. This complemented the success of the LCC model referred to as the “no frills airlines” business model. This encouraged other private airlines to emerge. The entry of LCC along with increased FDI inflows, tourist inflows, higher corporate travel, higher household incomes, sustained business growth and supporting government policies, all contributed to the growth of the Indian aviation industry. Today, there are effectively seven major airlines operating 11 different brands.…

    • 1504 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Fdi in Aviation

    • 1926 Words
    • 8 Pages

    [pic] New Delhi, Sep 21 (IANS) Civil Aviation Minister Ajit Singh Friday said the government's open-sky policy for foreign investment in domestic airlines has positively affected sentiments in the aviation industry, but it is too early to say how much investment the sector would attract."The sector is going through difficult times and is facing financial stress due to the overall economic slowdown. But the mood is upbeat now after we (government) allowed 49 percent FDI in airlines," Singh told reporters on the sidelines of an Assocham event here."Time will tell how many foreign airlines are interested," Singh added a day after the government notified that the foreign airlines can now pick up 49 per cent stake in domestic passenger carriers.Foreign carriers have so far not been allowed to directly invest in Indian carriers for security reasons, although 49 percent FDI by non-airline players was allowed.The Indian airlines sector has been going through a tough operating environment as high fuel and interest cost have hurt it. The government expects that the decision will help bring in more funds to the airlines who have been cold shouldered by banks.The decision is particularly expected to help airlines like Kingfisher to gain capital and resume full services. Other Indian carrier's require funds for expansion and to gain market share.International airlines have welcomed the government move. Ccarriers like Singapore Airlines, Emirates and the International Airlines Group (IAG), which owns British Airways and Iberia, have said they do not have any immediate plans to invest in India.Virgin Atlantic and Lufthansa also said they were not keen on investing in India at the moment.Middle East airline Etihad Airways has said it will wait for all the modalities of the new reforms are clear.Several such overseas carriers contacted by IANS and aviation watchers said high jet fuel cost, an extremely price-sensitive market, huge debt of the carriers and…

    • 1926 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Aviation Industry in India is one of the fastest growing aviation industries in the world. With the liberalization of the Indian aviation sector, aviation industry in India has undergone a rapid transformation. From being primarily a government-owned industry, the Indian aviation industry is now dominated by privately owned full service airlines and low cost carriers.…

    • 8573 Words
    • 35 Pages
    Powerful Essays
  • Powerful Essays

    Travel and Tourism

    • 2520 Words
    • 11 Pages

    The major changes in the airlines industry had a strong influence on transportation. Intense competition between private and government-owned carriers took the form of cuts in air fares. A major development was the commencement of operations of India's first low-cost no-frills airlines…

    • 2520 Words
    • 11 Pages
    Powerful Essays
  • Powerful Essays

    Hr Executive

    • 2280 Words
    • 10 Pages

    TEACHING NOTE AIR DECCAN: REVOLUTIONISING THE INDIAN SKIES DVR Seshadri and Jane Henry∗ CASE FACTS Civil Aviation in India, since its inception, has been a mode of transport mainly for the elite, and it implies that it is within the means of affordability of less than 1% of the population only. The launch of Air Deccan in the last two years has changed this paradigm forever. The singular driving force behind this audacious venture is Captain Gopinath. Over the years, there have been many low-cost airlines in service in the advanced countries. Many of them have succeeded despite the general downtown in the aviation industry post 9/11. Equally tenacious entrepreneurs, who saw the potential for a low-cost and 'no frills' airline, have launched many of these ventures. In what is peculiar to India, Captain Gopinath saw the market not in terms of those who were flying, who would want a low-cost airline, but instead as the more than one billion Indians, who had no possibility of flying ever in their lives in the legacy airlines, simply because there was no way they could ever afford the price. That Air Deccan could even think of launching a regular airline, given their very modest means, and more importantly, strong political support of the existing players, is a feat by itself. Its continued growth, month after month, is a saga of fortitude and tenacity. This case study describes the story of the launch of Air Deccan and the challenges ahead of it. It can be discussed in a course / module on 'Entrepreneurship.' It can also be used in a course on 'Strategy' to illustrate how a start-up with a strong value proposition could take on the well-established players in the industry, by 'frame-breaking' innovation. In addition to the usual approaches to cost containment adopted by low-cost airlines worldwide, Air Deccan has implemented several measures that are unique in the Indian context. This has resulted in steady increase in the market share of the airline, much to the…

    • 2280 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    What Management Is

    • 3774 Words
    • 16 Pages

    India is one of the fastest growing aviation industries in the world. Because of the introduction of liberalization policy and deregulation policy in the Indian aviation sector, the industry has witnessed a vast difference with the entry of the privately owned full service airlines and low cost carriers. Besides, there was significant increase in the number of domestic air travel passengers. Some of the factors that have resulted in higher demand for air transport in India include the growing purchasing power of middle class, low airfares offered by low cost carriers and the growth of the tourism industry in India.…

    • 3774 Words
    • 16 Pages
    Powerful Essays
  • Better Essays

    Airlines Industry in India

    • 1946 Words
    • 8 Pages

    The recent Gujarat riots & the government’s inability to control the situation have also led to an increase in the instability of the political arena.…

    • 1946 Words
    • 8 Pages
    Better Essays
  • Satisfactory Essays

    Richardson (2010) Indian aviation industry witness slow and steady growth but with a huge market growth which is waiting to open up. India is unique in terms of its aviation industry development. He also says India is not dependant on international flights for its growth but can eventually rely on internal market that is driven by more than 7% of the economic growth. Impacts like high fuel cost, decrease in passengers, and cut throat prices of many of the world airlines have a limited effect on India and with different business models India has very huge plans to invest in the aviation industry.…

    • 605 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Jet Airways

    • 5164 Words
    • 21 Pages

    The Indian aviation industry is one of the fastest growing aviation industries in the world. The government’s open sky policy has led to many overseas players entering the market and the industry has been growing both in terms of players and number of aircrafts. Today, private airlines account for around 75 per cent share of the domestic…

    • 5164 Words
    • 21 Pages
    Powerful Essays

Related Topics