Saturday, August 12, 2017

Survey shows factors for India's lower international air traffic share

New Delhi: The Economic Survey 2016-17's second volume has recommended removing the 0/20 rule — where an Indian carrier needs to have at least 20 planes in its fleet to fly abroad — and having bilateral agreements with other nations in a way that takes care of desi airlines as the ways for increasing the market share of Indian airlines in international traffic to and from the country.
Despite the fact that India is a huge market for air travel and is growing at among the fastest rates in the world, the survey has pointed out in 2015 Indian carriers accounted for only 36.6% of international traffic to and from India. In comparison, the airline/s of Netherlands, China and UK had a 60.6%, 49.1% and 48.9%, respectively, share in international travel to and from their countries in 2015.
"Indian domestic airlines have a very lower share in international traffic to and from India... Factors like foreign airlines utilising the sixth freedom of the air, expansion of capacity entitlements under bilateral air service agreements with foreign countries, lower utilisation of India's own capacity entitlements, the 0/20 rule and fleet constraints are responsible for the same," the survey says.
"Reforms such as privatisation or disinvestment of Air India, creation of aviation hubs and reconsidering the 0/20 rule are some suggestions to improve Indian airlines' share in the international market," it adds.
11/08/17 Saurabh Sinha/Times of India