Despite the government restricting access to international routes, Indian airlines are queuing up to fly them attracted by higher profit margins, a 20% growth in passenger traffic every year, lower operating costs and cheaper jet fuel.
Kingfisher Airlines Ltd,...
SpiceJet Ltd and Paramount Airways Pvt. Ltd are gearing up to go global. Air India and Jet Airways (India) Ltd are currently the only airlines flying international destinations. India only allows carriers with five years’ experience on domestic routes to fly overseas.
The goverment is willing to relax the current guidelines but a group of ministers, responsible for finalizing the new aviation policy, has not been able to reach a consensus.
According to an analyst with a leading domestic brokerage, the size of international market for flights into and out of India is about Rs30,000-35,000 crore. Out of this, the West Asian market accounts for 25% and the South-East Asian and European market account for 15% each. Other key markets include the US.
P.R. Sanjai/Livemint
Monday, January 28, 2008