Ever since the call for early elections was sounded, the Government has been pushing, almost week by week, several pro-reforms initiatives: from much-needed tax and duty cuts to expanding farmers’ markets. But one taint remains: reforms have stalled, if not grounded, in the civil aviation sector.
All eyes, therefore, are on the next Cabinet meeting expected this week. The hope: the Government wipes the dust off the Naresh Chandra Committee’s proposals to let domestic carriers fly abroad and open more windows for better air connectivity for the increasing number of passengers to and from India.
The need couldn’t have been more pressing. In the last one year, the number of people travelling to India has gone up 16 per cent to 2.4 million while the number of those flying abroad is virtually doubled—up 18 per cent.
Still more Indians want to fly out but the options are limited and the seats full.
While airlines project a booking of over 85 per cent to all important global destinations for February, the fact is you are unlikely to get a confirmed booking, at least next month, to either US, Europe, South East Asia or the Gulf. Because all international airlines keep a 10-15 per cent buffer and release the seats only on the day of travel. This is what’s happening in the air as the Government sits on the proposals:
• Flights to US: 85-90% seats full on Lufthansa, British Airways, KLM, Air France, JAL, China Airlines
• Europe: 85-90% seats occupied on Lufthansa, British Airways, KLM, Air France
• Gulf: Over 95% seats full on Air Emirates, Indian Airlines, Gulf Air
• S E Asia: 90-95% full on SIA, Malaysian Airlines, Sri Lankan Airlines, Cathay Pacific
In short, what’s not available is a flight out of the country. But the same goes for those headed to India. ‘‘Definitely, Indians are travelling a lot. Similarly, many are coming here. India’s a destination for businessmen, tourists, officials. Of late, we are being seen as a major conference centre. There’s no count of the number of seminars and conferences being held here,’’ says Subhash Goyal, president of Indian Association of Tour Operators.
And the foreign airlines are encashing this surge in traffic. Since 2001, there has been a 28 per cent increase in seat share of foreign airlines, nearly 44,000 have been added. Air Emirates, Malaysian Airlines, Singapore International Airlines and Gulf Air have emerged as major players while Air France, British Airways and Lufthansa have gained in strength, adding new points like Bangalore, Hyderabad, Kochi and Kolkata onto their list.
In contrast, Air India’s fortunes have dwindled. Its market share is down to 21 per cent and, along with Indian Airlines, controls just about 40 per cent of India’s international air travel market. Between these two airlines, 71 air bilateral agreements lie unused. To top it, Air India has dropped 35 destinations from its list in the last three decades. These include places like Cairo, Amsterdam, Geneva, Rome and Sydney. While the Government mulls over letting private domestic airlines fly abroad, national carriers take the plea that their fleet have not been increased to meet the rising demand. ‘‘But why should we have just one national carrier? Why can’t Jet Airways and Air Sahara also being considered flag carriers. This will only increase the capacity. This is what the demand is,’’ says Goyal.
He is hopeful that the Government will finally endorse the Naresh Chandra Committee proposals.
But Balbir Mayal of the Federation of Travel Agents fears it could all be lip service: ‘‘They said private airlines will fly to Colombo, but no formal notification has come. A new charter policy was announced, but again no directive. Now the civil aviation policy,I am not sure whether they will announce it.’’