Indian aviation sector has wit- nessed a sea change in the last couple of years. From being a niche service that only a few privileged could afford, it is now gradually reaching out to the Indian middle-class. The domestic sector is expanding at the rate of 45% per annum and is expected to continue bulging at around 20% for the next 4-5 years. Overall passenger traffic has soared by 19.9% from 43.47 million in 2004-05 to 52.12 million in 2005-06, whereas domestic passenger traffic has grown by a whopping 28% from 39.86 million to 50.98 million during the same period. Buoyed by the rush in traffic, the domestic carriers, during the previous year alone, have placed orders for 400 planes. And, going by the estimates of the world's biggest aircraft manufacturer, Airbus, Indian skies are likely to hold up anything between 800 to 1,000 airplanes by 2023.
Indeed, according to a latest report in the ET, India's aviation sector has become the fastest-growing in Asia in terms of flight operations. According to latest statistics by global travel information company OAG, while the capacity deployed by Indian carriers in the international sector increased by 14%, the rise in domestic air capacity has been 46% in October 2006.
From just three domestic carriers a few years back, the number has gone up sharply to 14 today. These new carriers, predominantly led by the new breed of low-cost airlines like Kingfisher, GoAir, Paramount, and IndiGowith their hard-to-believe airfareshave transformed the air travel market into a fiercely competitive battleground. To grab a larger slice of the pie, the players have even engaged in a kind of cut-throat pricing war, which has seen some carriers selling tickets for as low as Re.1, enabling even the bottom-of-the-pyramid travelers the luxury of an air ride. The incredibly low airfares are attracting a sizeable number of train travelers to air travel. However, the number of passengers traveled by air (six million passengers per year) is just a tiny speck when compared to the 15 million railway passengers per day. This speaks volumes about the huge untapped potential of the market. |
