INDIAN AIRLINES LOSING SPACE AT HOME AND ABROAD
FOREIGN CARRIERS CONTROLLING PASSENGER TRAFFIC
2017-05-15 11:18
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Every major international airline from almost every part of the world wants to expand operation in India, The country is witnessing the world’s biggest air traffic growth at over 23 per cent since the end of 2015. In January, this year, the domestic air traffic grew to an all-time record of 25 per cent. Some of the Gulf countries are even lobbying with the government for permission to operate on India’s domestic space making such unusual demand as allowing operational rights in highly security sensitive north eastern parts of the country. Unfortunately, airlines from India are struck with limited routes and limited passenger ferries to and fro the country. And, the domestic air traffic business is being increasingly cornered by foreign-linked airlines operating in and out of India on the sly mostly through joint equity ventures with local private promoters. India’s so-called local airlines such as Jet Airways, Indigo, Vistara and Air Asia are effectively foreign controlled irrespective of their official equity holding structure. Some are even operating out of foreign hubs. Vested interest groups are constantly lobbying with the government for privatisation of India’s own national flag carrier, Air India, which, thanks to the government’s civil aviation policy, has long lost its dominant market position to other foreign-linked locally-registered airlines such as Indigo and Jet Airways.