Rising economy, Gulf operations save India's airlines

Bangalore: Notwithstanding the controversy surrounding exorbitant prices charged by the airlines in India, bleeding balance sheets for two years since 2008 recession, the year 2010 has ended on a happy note to the airline industry in India.
The recovery is so spectacular that Indian aviation industry has emerged as one of the fastest growing aviation markets globally thanks largely to India's excellent economic growth which is pegged at 8.75% for the current fiscal by the government. With economic recovery in full swing, the consumer spending on travel too has gone up rescuing the airlines industry that was staring at bleak future not long ago. According to one of the aviation experts, 2011 will be much better with passenger traffic likely to reach nearly 60 million from 45 million in 2009.
Most of these loss making airline operators have left behind the turbulent period of surging operational costs, excess capacity and unruly competition. Now they reach more domestic destinations hitherto unheard of besides targeting the lucrative Gulf sector, Saudi Arabia in particular. The Gulf was the sole monopoly of the national carrier Air India a few years ago. But that has changed. Jet Airways, the private airlines for example, now flies to Manama, Doha, Abu Dhabi, Dubai, Sharjah, Kuwait, Muscat and three destinations in Saudi Arabia: Riyadh, Jeddah and Dammam. Kingfisher Airlines, a new entrant in the overseas market, has introduced flights to Dubai from Mumbai and Delhi.
02/01/11 Gopal Sutar/Arab News

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

Categories: Indian Aviation- In General Jan 2011