Wednesday, January 29, 2014

Entry of A-380s puts Indian carriers in a spot

Mumbai: The decision of the Civil Aviation Ministry to allow A-380 aircraft to fly into India is expected to benefit Indian tourism, but the move will hurt the interest of Indian carriers such as Air India and Jet Airways, according to analysts.
The fares to be offered by foreign airlines having A-380 aircraft in their fleet, including Singapore Airlines, Emirates and Lufthansa, would be much cheaper than the fares of Indian carriers who have B-737s, A-320s and B-787 aircraft in the fleet and flying to Singapore and Dubai, to name some destinations.
A-380 called the Superjumbo has capacity to accommodate over 850 passengers in an all-economy class configuration and 555 passengers in three-class configuration. The capacity offered by the Indian carriers is no match to them.
“Of course, the entry to A-380 will affect Indian airlines like Air India, Jet Airways and Indigo. They cannot match the fares to be offered by airlines operating A-380s. But they should have worked out their strategy well in advance as they knew that A-380s would be allowed. In a global environment, one cannot prevent A-380 from entering India for long time. For the time being, Indian carriers will be affected,” said Iqbal Mulla, President, Travel Agents’ Association of India.
28/01/14 Lalatendu Mishra/The Hindu
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