Future of Airlines Industry in India

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Future of Airlines Industry in India

Posted On : Dec-12-2011 | seen (229) times | Article Word Count : 508 |

The airlines industry in India has come a long way ever since JRD Tata spearheaded this movement and forayed into the vast expanse of the skies. Circa 1932, this doyen of Indian aviation industry flew a De Havilland Puss Moth from Karachi to Bombay, laying the foundation of a massive revolution that took to the sky.

The Past
The airlines industry in India has come a long way ever since JRD Tata spearheaded this movement and forayed into the vast expanse of the skies. Circa 1932, this doyen of Indian aviation industry flew a De Havilland Puss Moth from Karachi to Bombay, laying the foundation of a massive revolution that took to the sky. Known as Tata Airlines, it monopolized the market until 1953, when Jawaharlal Nehru convinced Tata to nationalize airlines. Thus, came into being the Indian Airlines merging previous 8 domestic airlines. With Air India, Indian aviation industry marked its entry into the international arena.
The Present
Now, the Indian airlines industry is a force to reckon with in the world. With the inclusion of private players like Jet Airways, Kingfisher Airlines, Deccan Airways, Jet Lite and others, it is a bigger conglomeration. The entry of big shots and business houses has triggered a volatile element to the aviation sector. It has witnessed mergers and acquisitions, purchase of world-class aircrafts, opening of newer routes, airport openings and lot more. The inaugural of the T3 terminal in Indira Gandhi International Airport in New Delhi amidst much hype and hoopla is not without reason. Today, it is one of the best airport terminals in the world, squeezing in the very best and latest amenity.
From the time of entering the jet age with the addition of Air India B707 and connecting with the USA in 1960, Indian airlines industry has now penetrated to the remotest of destinations in the world. Boasting to be one of the first airlines to induct the A320 in 1989, Indian Airlines now run on a fleet of slick aircrafts at par with international standards.
The Future
However, Indian airlines industry might face with grim situation looking at the current imbroglio and the hassles it has to endure in operation. Mass strikes by airlines personnel, pilots, cabin crews and ground staff have become quite rampant. The rising fuel cost has rendered many of the airlines to face huge loss in business. Now, it is high time to introspect and weed off deterrents plaguing the Indian industry. It is a bigger challenge for the Indian airlines industry to tackle fiscal deficit, lack of infrastructure, lower FDI, coalition governments and bureaucracy.
The present fracas of Kingfisher Airlines asking for a government bailout is an outcome of mounting fuel prices which can make it difficult for any airlines to bear the cost. With outstanding credit on fuel purchase, banks are unwilling to take it any further. When a giant like Kingfisher Airlines is gasping for breath with stocks plummeting to an all time low, it speaks volumes about the defunct modus operandi of Indian airlines. Routes, which are not commercially viable and inappropriate taxation, are a couple of reasons put forward by Dr. Vijay Mallya, its owner. So, it is time to chalk out a plan and a plausible model to resurrect the Indian airlines industry to regain its projected glory.

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<h1> Future of Airlines Industry in India</h1> Author: <a href='http://www.articleseen.com/profile_Smithandrew.aspx'>Smithandrew</a> The Past
The airlines industry in India has come a long way ever since JRD Tata spearheaded this movement and forayed into the vast expanse of the skies. Circa 1932, this doyen of Indian aviation industry flew a De Havilland Puss Moth from Karachi to Bombay, laying the foundation of a massive revolution that took to the sky. Known as Tata Airlines, it monopolized the market until 1953, when Jawaharlal Nehru convinced Tata to nationalize airlines. Thus, came into being the Indian Airlines merging previous 8 domestic airlines. With Air India, Indian aviation industry marked its entry into the international arena. 
The Present
Now, the Indian airlines industry is a force to reckon with in the world. With the inclusion of private players like Jet Airways, Kingfisher Airlines, Deccan Airways, Jet Lite and others, it is a bigger conglomeration. The entry of big shots and business houses has triggered a volatile element to the aviation sector. It has witnessed mergers and acquisitions, purchase of world-class aircrafts, opening of newer routes, airport openings and lot more. The inaugural of the T3 terminal in Indira Gandhi International Airport in New Delhi amidst much hype and hoopla is not without reason. Today, it is one of the best airport terminals in the world, squeezing in the very best and latest amenity.
From the time of entering the jet age with the addition of Air India B707 and connecting with the USA in 1960, Indian airlines industry has now penetrated to the remotest of destinations in the world. Boasting to be one of the first airlines to induct the A320 in 1989, Indian Airlines now run on a fleet of slick aircrafts at par with international standards. 
The Future
However, Indian airlines industry might face with grim situation looking at the current imbroglio and the hassles it has to endure in operation. Mass strikes by airlines personnel, pilots, cabin crews and ground staff have become quite rampant. The rising fuel cost has rendered many of the airlines to face huge loss in business. Now, it is high time to introspect and weed off deterrents plaguing the Indian industry. It is a bigger challenge for the Indian airlines industry to tackle fiscal deficit, lack of infrastructure, lower FDI, coalition governments and bureaucracy. 
The present fracas of Kingfisher Airlines asking for a government bailout is an outcome of mounting fuel prices which can make it difficult for any airlines to bear the cost. With outstanding credit on fuel purchase, banks are unwilling to take it any further. When a giant like Kingfisher Airlines is gasping for breath with stocks plummeting to an all time low, it speaks volumes about the defunct modus operandi of Indian airlines. Routes, which are not commercially viable and inappropriate taxation, are a couple of reasons put forward by Dr. Vijay Mallya, its owner. So, it is time to chalk out a plan and a plausible model to resurrect the Indian airlines industry to regain its projected glory. 
About the Author: Andrew Smith is an author who always write article on 
<a rel="nofollow" href=http://www.onetravel.com/travel/airlines/airindia-ai.html>Air India</a>
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Andrew Smith is an author who always write article on
Air India

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