Foreign airlines see growth opportunities in India, says CAPA

Chennai: Foreign airlines remain interested in India despite challenges.
A number of carriers have either suspended services to India ( such as AirAsiaX, American Airlines and Qantas) or have reduced frequencies on certain routes (Air France, Austrian and Lufthansa).
Jet Airways recently announced plans to suspend its Mumbai-Johannesburg service from June.
Reasons for these reductions include insufficient traffic, poor yields and high airport charges, according to the Centre for Asia Pacific Aviation, a research agency on aviation.
Apart from AirAsiaX, these are largely carriers that face competition from Gulf and Asian carriers on routes to/from India.
AirAsiaX's withdrawal was in part due to the weakness of its direct distribution strategy in the Indian market, which could not support the capacity generated by 11 weekly wide-body services into Kuala Lumpur, the agency said.
01/06/12 TE Raja Simhan/Business Line

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Categories: Foreign Jun 2012, Indian Aviation- In General Jun 2012