Indian carriers lose market share to foreign airlines

New Delhi: Domestic carriers such as Air India and Jet Airways seem unable to take benefits of the government’s liberalised open-sky policy. Due to high fuel prices, heavy taxation and several entry barriers, Indian carriers have lost around 6% market share to foreign carriers on the country’s international traffic.
Even as the government aggressively negotiated seat entitlements and signed agreements for multiple designated carriers under various bilaterals, domestic carriers lagged behind. Instead, this has given access to foreign carriers. For example, Air India operates seven flights per week on India-France sector. As against this, Air France operates 25 flights a week to India. Similarly, Germany’s Lufthansa operates 45 services to India as against Air India’s seven flights a week to Germany.
“Indian carriers would lose competitiveness to foreign airlines. We need to create a level-playing field for our own carriers so that they can compete with them,” an official in the ministry of civil aviation said. Out of the total bilateral seat entitlements with other countries, Indian carriers are utilising less than 40%.
18/02/08 Nirbhay Kumar/Economic Times

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Categories: Foreign Feb 2008, Indian Aviation- In General Feb 2008