Foreign carriers benefit more from open skies

New Delhi: Foreign airlines such as Lufthansa, Singapore Airlines and Cathay Pacific seem to be gaining more out of India’s move to liberalise the aviation sector. These carriers have gained much more than domestic players like Air India and Jet Airways, who are supposed to reap reciprocal benefits from bilateral pacts.
While the government entered into bilateral air-service agreements to provide Indian carriers more access to foreign markets, the move has actually gone in favour of foreign carriers. Indian airlines, with their limited capacity, have not been able to seize the opportunity.
Foreign carriers are currently operating about 3,11,000 seats per week to and from India, a jump of about 120% over 1,42,000 seats per week in summer 2004. During the same period, Indian carriers increased their capacity on international routes to about 1,49,000 seats, up 66% over 89,600 seats in 2004. This means that Indian carriers have lost about 6% market share in the last 3-4 years.
Out of the total bilateral seat entitlements with other countries, Indian carriers are utilising less than 40%.
Higher ATF price in the country puts Indian carriers at the receiving end. While foreign carriers fill their tanks at lower base price, Indian carriers have to pay nearly 25% more.
06/10/08 Nirbhay Kumar/Economic Times

To Read the News in full at Source, Click the Headline

Categories: Foreign Oct 2008