The aviation industry has essayed
a stellar role in facilitating the growth of business and economy in our
nation. A comprehensive civil aviation set-up is important for the smooth
influx of investment, tourism and trade. This sector not only offers air
transport for goods and passengers, but also plays a hand in the employment
generation. If one glances through the Indian aviation sector, total passengers
(in the domestic route) flown by domestic carriers between January-April 2013 stood
at 20.289 million, according to official data.
According to DIPP (Department of
Industrial Policy and Promotion), the FDI (Foreign Direct Investment) in this
sector is worth $449.26 million between April 2000 and March 2013.
Market potential
A little less than 3% of Indians
use the aerial route. The market size of the Indian aviation space is set to
grow manifold in the next decade: from 60 million currently to about 450
million passengers. AirAsia, the latest entrant in this sector vows to put air
travelling within the reach of India’s immense middle class.
AirAsia has one of the best
business brains---Tony Fernandes---at its helm of affairs. Fernandes has
displayed intellectual candor, a rarity in his Indian business peers. AirAsia could
also ring in efficiency and a strong work ethic which is lacking in this
sector. This airliner may do away with the freebie legacy which has badly hurt
the aviation sector in India. The pilots of AirAsia are sufficiently trained to
save on fuel which flying, landing and taking off—an endeavor which could go a
long way in savings. AirAsia could bring in fresh focus on matters pertaining to
pricing, commercial strategy and marketing.
Apart from the airport charges and high jet fuel costs, AirAsia will have its task cut out as it will have to not only fight to garner the attention of every passenger but also lay emphasis on cost efficiency. With AirAsia entering the Indian skies, air travelers will have more option on their hands whilst the aviation sector sees a new lease of life.
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