Thursday, September 30, 2010

After AI & Jet, GoAir to expand base in Delhi

Mumbai: The capacity constraint at the Mumbai airport and a pending closure of its main runway for recarpeting between November and June, have prompted the low-cost carrier to expand and revamp its operations and facilities at the International Airport. GoAir, promoted by the Wadia Group, is the third airline from Mumbai to shift its operational focus to Delhi.
National carrier and Naresh Goyal-promoted Jet Airways are in different stages of negotiations with the Delhi airport operator for expanding their bases in Delhi. While the national carrier has announced its intent to make Delhi its hub to cut costs, Jet Airways is looking for more space and increased international operations with the Delhi airport operator. These airlines together command over 50% of the total domestic market share.
“Today, the issue for airlines is availability of infrastructure. Delhi has ready office space, terminal space and lounges which all lead to more operational efficiency for an airline. Mumbai's runway is choked and Delhi will have three runways by October-end with readily available infrastructure... carriers feel it makes a lot of sense to step up presence in Delhi,” said a Delhi airport official requesting anonymity.
“We have started a revamp and expansion of our existing facilities at the Delhi airport. We will consolidate our operations in Mumbai, but the Delhi infrastructure is better. Besides, we are concentrating more on our network in the North," GoAir's CEO Kaushik Khona told ET. GoAir has 45% of the low-cost carrier market share between Mumbai and Delhi. It has 21 departure and 17 arrival slots at the Mumbai airport, and 28 arrival and 33 departure slots in Delhi.
30/09/10 Manisha Singhal/Economic Times
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