While industrial growth triggered by the first leg of economic liberalisation in early nineties led to a sea change in India's social fabric over the last couple of decades, aviation stands apart as a sector that is capable of fuelling drastic changes in terms of economic growth.
In fact, for more than 40 years since independence, Indian aviation was a public sector monopoly, with Air India and Indian Airlines as the two only operators serving the domestic and international market respectively. Liberalisation changed this for better as air taxi operators were allowed to serve the domestic market. While many private airlines entered and exited, a few players including Jet Airways survived the initial turbulence.
The government's decision to deregulate international air traffic in 2004 allowed private Indian carriers to extend their services to international routes. Leveraging positive policy ambience, airlines such as IndiGo and SpiceJet carved a niche for themselves by adopting a low-cost business model.
18/03/15 Preetam Kaushik/Business Insider
To Read the News in full at Source, Click the Headline
In fact, for more than 40 years since independence, Indian aviation was a public sector monopoly, with Air India and Indian Airlines as the two only operators serving the domestic and international market respectively. Liberalisation changed this for better as air taxi operators were allowed to serve the domestic market. While many private airlines entered and exited, a few players including Jet Airways survived the initial turbulence.
The government's decision to deregulate international air traffic in 2004 allowed private Indian carriers to extend their services to international routes. Leveraging positive policy ambience, airlines such as IndiGo and SpiceJet carved a niche for themselves by adopting a low-cost business model.
18/03/15 Preetam Kaushik/Business Insider
