Three new airlines are expected to bring relief to flyers
Today, air travel is a necessity not a luxury. Long gone are the days when the majority of the population in the country could only afford travel by road, rail or water. In modern times, when the average standard of living has gone up, people have money but no time and hence, don’t think twice before preferring air travel. Therefore, the number of people inconvenienced by the major disruptions of over 4,000 flights scheduled by IndiGo at the beginning of this month is just unimaginable.
The chaos was the result of failure on the part of the particular airline company in implementing the provisions of the new Flight Duty Time Limitation (FDTL) norms as issued by the Directorate General of Civil Aviation (DGCA). These safety regulations prescribe how long pilots can remain on duty, how many hours they can fly, the number of night landings permitted, and the minimum rest they must receive. Although the DGCA has granted IndiGo a temporary, one-time exemption from these norms until February 10, the problem seems to be far from over.
Presently, IndiGo accounts for 65 per cent of the share in the domestic Indian aviation market and, therefore, is the major airline company in the country. Other airlines in comparison have limited shares, with the Air India Group, including Air India and Air India Express, cornering 27 per cent of the market, Akasa Air enjoying a 5 per cent hold, SpiceJet having a 2 per cent share, and those such as Alliance Air, Star Air, etc., with one per cent to 2 per cent shares. The recent decision of the Union government to clear the way for three new airlines seems to be a development resulting from the dominance of IndiGo.
Union Minister for Civil Aviation Ram Mohan Naidu, making the related announcement, said that over the last week, he met teams from new airlines aspiring to take wing in Indian skies, namely Shankh Air, Al Hind Air and FlyExpress. He also said that all three airline companies have already received the NOC from the Ministry. The Union Minister further said that the government is encouraging more airlines to enter the Indian aviation market, as it is one of the fastest-growing aviation markets in the world, and schemes like Ude Desh ka Aam Nagrik (UDAN) have enabled smaller carriers like Star Air, India One Air and Fly91 to play an important role in regional connectivity within the country.
The confession of Naidu that the recent disruption in the aviation sector was due to issues specific to IndiGo’s internal management clearly points out that the government wants to end the monopoly of this airline company in the Indian aviation sector. The IndiGo flight crisis that nearly crippled one of the world’s fastest-growing aviation markets seems to have annoyed the Indian government.
Over the past decade, many airlines, including Kingfisher Airlines, Go First and Jet Airways, have stopped flying amid debt woes, even as the industry consolidated to some extent after the privatisation of Air India. The airline companies have to struggle with finance and competition, besides high costs. IndiGo managed to not only keep its head above water but also make a profit due to its low-cost business model, which comprised high aircraft utilisation and lean staff facing high workloads. It was not a foolproof model. The new airline companies, as well as the existing ones, now need to adopt a business model that will balance their low-cost strategies with operational efficiency and sustainable growth. This would provide significant relief to both these companies and domestic air travellers.
