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I had the pleasure of joining industry stalwarts Amber Dubey, Ayaz Memon, Govindraj Ethiraj, and Jitender Bhargava on Boom News’ Google+ India Hangout discussing the impending entry of new airlines AirAsia India and Tata-SIA and their potential impact on the Indian airline industry.
Govindraj Ethiraj is a journalist of repute and the moderator. Amber Dubey is the head, aerospace and defence practice, KPMG, Ayaz Memon is a journalist and sports commentator and Jitender Bhargava is a former executive director of national carrier Air India.
Do see the video, and please share your thoughts and views via a comment.
Good discussion. Like the nationalist views and consumer views from experts. On the capacity front, these airlines should be careful in their schedules. Recent airline AirCosta had been very balanced in their schedules. I think AirAsia will be taking similar stand.
Interesting discussion, an aviation policy is required that takes into account the needs of all stake holders and not the protection of Air India. Taxes are the worst enemy of aviation, in countries where taxes and fees are high aviation revenues are lower, Canada is an example. A robust aviation industry generates more revenue for the government than higher taxes. Gulf and European carriers mainly competed with Air India, agreed that Jet and Kingfisher operated internationally but it was primarily Air India. Air India could not even compete on service. The other point is the inability of the airlines to expand the market. What happened to capacity generates demand? The airlines never looked at more secondary and tertiary destinations to expand the market. The lack of MROs in a country the size of India with its education system and technological capability is unthinkable.
This was a very interesting discussion to watch Devesh. Some really good points from the participants but it was very clear on how there are two sides to the same issue: Travelling public taking a short term view on low fairs while those in know of the aviation industry taking a long term view on the viability of Indian carries given the excess capacity.
Personally i think two things will help Indian aviation – first, an aviation policy that recognizes the potential of airline sector and the role it plays in the overall economy v/s milking it for taxes and secondly privatizing Air India. We really dont need a national carrier bleeding Indian coffers.