May you live in interesting times," says an ancient Chinese adage. That pretty much sums up Indian aviation today. Three developments that turned the sector on its head have taken place in recent times.
First, foreign direct investment (FDI) rules that previously allowed 49% investment in India's airlines from only institutional and individual investors, thereby protecting India's strategic interest, were changed to permit 49% investment by foreign airlines.
Second, India's low-cost airlines, especially SpiceJet, instead of developing a business model customised for India, have increasingly mimicked the business operating styles of America's Southwest Airlines and JetBlue.
And third, Air India began flying Boeing 787 Dreamliners, drawing praise and flak in equal measure. Let's look closely at each development, for they could potential change the fortunes of Indian aviation.
25/08/13 Mark D Martin/Economic Times
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First, foreign direct investment (FDI) rules that previously allowed 49% investment in India's airlines from only institutional and individual investors, thereby protecting India's strategic interest, were changed to permit 49% investment by foreign airlines.
Second, India's low-cost airlines, especially SpiceJet, instead of developing a business model customised for India, have increasingly mimicked the business operating styles of America's Southwest Airlines and JetBlue.
And third, Air India began flying Boeing 787 Dreamliners, drawing praise and flak in equal measure. Let's look closely at each development, for they could potential change the fortunes of Indian aviation.
25/08/13 Mark D Martin/Economic Times
