Airlines' fleet size set to double

New Delhi: Domestic airlines may be suffering losses but growth in Indian skies is unlikely to be muted in the years to come. According to the Economic Survey, more than 250 new aircraft are to be acquired by scheduled airlines in the next five years. Budget 2008-09.
As of now, there are 14 scheduled and 65 non-scheduled operators and together they own 535 aircraft. So, in terms of fleet size alone, the Indian skies are expected to witness 50 per cent growth by 2013. But the ministry of civil aviation has already given its ?in-principle? approval for import of 496 aircraft. So technically, the size of the domestic industry could double in the next five years. To keep pace with fleet expansion, the government is working on improving airport infrastructure across the country. The Airports Authority of India is committed to modernising 35 non-metro airports besides undertaking substantial upgradation of Kolkata and Chennai airports. Taking note of the strain on profitability of domestic carriers, the survey points out that due to intense competition between airlines and declining margins, consolidation within the industry is inevitable.
29/02/08 Sindhu Bhattacharya /DNA MONEY/Sify

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Categories: Indian Aviation- In General Feb 2008