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Flickr Photo Pool -> Airliners-India -> Civil Aviation -> If and When will the ME & SE markets open for pvt airlines ops ?
Post Info TOPIC: If and When will the ME & SE markets open for pvt airlines ops ?
tayara mechanici


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If and When will the ME & SE markets open for pvt airlines ops ?
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The point i am raising here is with regards all pvt operators presently flying within india, even if for less than 5yrs. I am aware of 9W & S2 operating to SE.


IMO the excess capacity within india is bleeding all the players with more aircrafts expected in the next 18months, the govt is aware of the situation, they do expect a shakeout but don't want to be seen encouraging  pvt airline monopoly (JET), there is a growing number of LCC operating from ME & SE to India. In the abscence of sufficient capacity with AI / IA and the looming problems, the govt has to enable the domestic airlines access to these markets to sustain the growth in domestic aviation.


For example to start with if 9W & S2 start operating to the gulf, this will greatly ease their problems and could make S2 attractive once again probably not at the same price. At the same time IT, DN and Spice could start op to SE with possibility to start ME some time next year.


Your views for or against the pvt players operating to these markets ?



-- Edited by tayara mechanici at 18:18, 2006-07-19

-- Edited by tayara mechanici at 18:44, 2006-07-19

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karatecatman


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tayara mechanici wrote:

Your views gents for or against the pvt players operating to these markets ?--


Pvt airlines can forget the Gulf till 2010!


It will be good to open up SE Asia to the pvt carriers, especially after the revised bilateral with Singapore.


One SQ 747-400 just knocks out IA/AI's A310/A320/A300 services. 


 


 


Gents? There is a lady here. Ms. Bhargavi Kerkur!



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tayara mechanici


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RE: If and When will the ME & SE markets open for pvt airlines ops ?
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karatecatman wrote:

    Gents? There is a lady here. Ms. Bhargavi Kerkur!

Apologies now edited


cheers



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VABBy


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RE: If and When will the ME & SE markets open for pvt airlines ops ?
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 Personally i feel the condition in South East asia is no better too. It was in the news that Malaysian Govt has done U turn and now wants MH to compete with Air asia rather than just surrender its market share. This has definately hurted Air Asia big time whose success every LCC in india is trying to replicate as a result with their stock value taking a nose dive to a new lower level.


 Aviation sector while remain a risky proposition unless the goverment gives a massive boost to the airport infrastructure in the country which china has been actually doing plus the economic index and purchasing power of the people have to increase. Because the ATF, spares and other costs in airline sector are pretty much the same. There is a limit uptill which  u can discount the price. Its simple economics no matter u get 1000 planes the bottom line is u cant have air tickets priced at 200-500 rupees its just not financially viable.


At the same time the growing indian middle class has yet to be bitten  by a full blown travel bug. Though it has started with more and more people visit south east asia and neighbouring countries  like nepal, srilanka the peak is yet to come...


Unless these things happens its not very bright idea to invest in aviation..



-- Edited by vabby at 19:16, 2006-07-19

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tayara mechanici


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RE: If and When will the ME & SE markets open for pvt airlines ops ?
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vabby wrote:





 This has definately hurted Air Asia big time whose success every LCC in india is trying to replicate as a result with their stock value taking a nose dive to a new lower level.  


Because the ATF, spares and other costs in airline sector are pretty much the same.


air tickets priced at 200-500 rupees its just not financially viable.



Air Asia was a monopoly in malaysia following the pull back of MH, monopoly or duopoly is the same as a regulated market and will hurt growth, standing example is INDIA.


The largest cost segment for most airlines around the world is labour, India has a distinct advt on this. There is a significant no of indian personnel in the airlines of ME & SE asia, the cost of labour right now in India is inflating and this is simply because of the demand supply equation, the govt should let the pvt operators a free hand and concentrate on the manpower supply i.e. Skills & Job creation. The cost of fuel & spares is dependent on global geo-political situation. The policy decisions should be in place to the favour of domestic aviation, as the greo-political situation improves airline in India will benefit . Aviation is no more a luxury it is a neccesity and integral part of the economy, the proponsity to travel by air increases at earnings of $10k/yr in real money, when converted through PPP its approx $4k (pls correct me if wrong, this is from a article i read). If you check the avg start salary of techies (other pro too) it is well within this figure. There are other sectors of the economy apart from tourism that is fuelling this travel growth.


Rs500/- tickets constitute less than 2%of the seats on each flight, this is part of marketing and revenue management strategy. The kill joy factor is excess domestic capacity and this can only be offset by intl growth. Check out the thread on aircrafts operating to India you can see the foreign airlines having a ball at the cost of indian operators and pax. UK - India is a clear example of avg fares lowering due to increased competion from more operators incl indian.



-- Edited by tayara mechanici at 20:46, 2006-07-19

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