Author: Hormuz P MamaPublisher: RupaYear: 2009Language: EnglishPages: 115ISBN/UPC (if available): 9788129115485
India, with a population of 1.1 billion, would seem an ideal environment for air travel. However, in reality, the air travel market of India is much smaller than believed, and just about 2.5 percent of the population flies at least once of the population flies at least once a year. By misjudging the size of the market, India’s airlines have created gross excess capacity which continues to plague them.India is not a suitable country for low-cost airlines, as most of their costs are comparable to those of full-service carriers. For international passenger operations, Indian carriers face fierce competition, and require concentrating on routes with fewer competitors as the entry of global giants has made of the rupee against the US dollar also hurts the Indian carriers, as does the very poor airport infrastructure.This book highlights the challenges faced by the aviation industry as well as the remedial measures, which if put into practice will take our aviation industry to newer heights.
PrefaceAcknowledgementExecutive Summary1. Introduction1.1 The Global Air Transport Industry2. Poor Penetration of Air Services in India2.1 Poor Purchasing Power2.2 A Highly Price-sensitive Market2.3 Comparison with Other Countries2.4 Conclusion3. Over-capacity – A Problem without a Solution3.1 The Passenger Growth Rate3.2 Unrealistic Capacity Growth3.3 No Provision for a Downturn3.4 Failure to Time the Market3.5 The Price of Miscalculation3.6 Conclusion4. The ATF Price Spike – No Longer the Most Serious Problem4.1 The Uncontrollable Accent4.2 Oil’s not Well4.3 Disproportionately Heavy Taxation4.4 The Mother of All Taxes4.5 More Efficient Fuel Distribution Needed4.6 Conclusion5. Rules of the Competition Game5.1 The Indian ‘Free-for-All’5.2 The Craze for Market Share5.3 Excess Staff5.4 Conclusion6. Irrational Ticket Pricing6.1 The Herd Mentality6.2 Extremes of Irrationality6.3 Migration from FSCs to LFCs6.4 Conclusion7. Need for Experienced and Capable Top Management7.1 A Bottomless Pit for Resources7.2 How Not to Run an Airline7.3 Conclusion8. Need for Consolidation8.1 Jet’s Acquisition of Air Sahara8.2 Kingfisher’s Acquisition of Air Deccan8.3 The Air India-Indian Airline Merger8.4 India’s First Airline Consolidation?8.5 Conclusion9. Services to Smaller Towns9.1 Poor Connectivity for Small Towns9.2 Lower Charges for Regional Aircrafts9.3 Eliminate Route Dispersal Guidelines9.4 Conclusion10. India not the Right Environment for Low-Cost Carriers10.1 The Global Scenario10.2 The Situation for Indian LFCs10.3 Existing Indian Secondary Airports10.3.1. Unavailability of Secondary Airports10.3.2. High Staff Costs10.3.3 Other Factors against LFCs10.4 Conclusion11. Competition from the Railways for the Lower End of the LFC Market11.1 Myths and Realities11.2 Busting the Myth11.3 Conclusion12. Business Jets to Take Away Premium FSC Passengers12.1 The Global Scene12.2 India a Major Market for Business Jets12.3 Business Jets as a Productivity Tool12.4 Competition for the Airlines12.5 Conclusion13. The Global Financial Situation and its Impact on India’s Airlines13.1 The Global Economic Downturn13.2 The Indian Economy13.2.1 The Falling Rupee13.3 Inflation14. International Operations for India’s Domestic Airlines14.1 Advantages and Disadvantages14.1.1 Intensity of Competition14.2 Conclusion15. Air Cargo15.1 Domestic Cargo15.2 International Cargo15.3 Conclusion16. Maintenance, Repair and Overhaul16.1 Poor Presence in India16.2 Conclusion17. Airports17.1 Introduction17.2 Development Work17.3 Low Investment over Past Years17.4 Airports: An Investment-intensive Industry17.5 Too Little Investment by India for Navi Mumbai Airport17.6 The Public – Private Partnership Approach17.7 Wrong Choices17.7.1 A New Airport for Greater Noida17.7.2 Nagpur Airport as an International Hub17.7.3 Airport Projects Galore17.7.4 Private Airports for Industrial Development17.8 Need for Long-term Planning17.9 Non-aeronautical Revenue17.10 City-Airport Road and Rail Links17.10.1 Road Links17.10.2 Railway Connections17.11 Airport Charges17.12 Conclusion18. RecommendationsReferencesAppendixIndex