Tuesday, November 07, 2006

Aviation Issues in India and the Region-New Blog

I've got a blog at mymysore72.blogspot.com where I wrote about aviation in general and diversified it into a forum for me to write about my travels as well. A blogger, Mr. GV Krishnan, based in Mysore, India egged me on to write aviation specific blogs that would highlight some of the deficiencies in Indian Aviation and what needs to be done to improve things.
It is common knowledge for anyone flying in the Indian skies as a passenger that it is a hassle to fly. There are lots of Airlines these days connecting just about everywhere one would want to go and that's not the problem. Actually, that's the good thing. The bad part of the entire rapid expansion is that the much needed infrastructure has not caught on and developments in this area is woefully slow.
The job situation in Aviation is good, pilots, engineers, cabin crew, ground support staff ET AL never had it so good. However, the Airlines are not doing so well. In their mad dash to be one up over the next operator, they are all painting RED. That's never good for a business that is capital intensive and these days over competitive. Us aviation chaps know that this field is a big hole, a bottomless pit where one pours in the money and the pit never fills up. Its a common joke to say that if one wants to be a millionaire in aviation, one should start with many millions!!
Private and corporate aviation activity is doing well. Here, there is a genuine need for business travel at schedules and routes convenient to the companies that own these Aircraft. The spurt in the purchase of corporate Aircraft may naturally result in, although not significant at this time, to make a dent in the business class travel on the Airlines in the long run.
Business class makes money for an Airline, lets not make any bones about this fact. In fact business class perhaps subsidizes those sitting back there in the "cattle class". Kingfisher Airlines in India realised that fact and what started out as a high density all economy seating Airline grew into a two class Airline. With that it hope to take on the other established "legacy Airlines".
There are more problems than solutions and not many solution providers. What I'll attempt to do is to keep writing about the problems, hoping that some one takes notice and does something about it. Easier said than done, in India. Solutions sometimes are staring in the face but people fail to recognize them. More in my next post.

4 comments:

Capt. Anup Murthy said...

Test

Anonymous said...

Anup,

Did you see this news today, March 20, 2008?
Chuck
chuckhilll@yahoo.com

NetJets Europe Ventures into India Frax Market
NetJets Europe yesterday announced it is partnering with Ashish Chordia–CEO of Mumbai-based Shreyans, an importer of luxury goods–to act as its strategic partner to start a fractional aircraft program in India. The fractional provider is making the move because of the “strong economic growth and increasing demand for private jet travel in India,” as well as a 400-percent rise in the number of NetJets Europe flights to and from India over the last four years. NetJets Europe director of marketing Robert Dranitzke noted, “India’s economy is booming and in today’s global marketplace, more and more Indian companies are investing and doing business in Europe.” Chordia was enlisted “to help introduce NetJets Europe to the local community” due to his knowledge of the Indian market and his experience representing luxury brands such as Porsche, Fendi and Van Cleef and Arpels. Through the strategic partnership, NetJets Europe and Chordia will offer business jet services to Indian customers looking to travel abroad, but they are also considering domestic aircraft charter service with additional local partners. Meanwhile, NetJets continues to study the business jet travel market in China to possibly start a program there.

Capt. Anup Murthy said...

Thanks for the news. Netjets is trying in China for some time. The regulations there is tough for general aviation at the moment. That's the main reason for lack of large sales of corporate aircraft in a country of that size and wealth. Let's see if Netjets succeeds. They tried here in SE Asia some time back and failed to launch. Regarding India, that's another ball game. Some have tried this flex ownership before and not been successful. Netjets may be able to do better, again something to wait and see.

Capt. Anup Murthy said...

Chuck, here is a news item that mentions the three big names in jet charters and fractional ownership companies who are trying to make forays in the Indian market: http://www.thaindian.com/newsportal/business/sky-high-private-jets-taking-off-in-india_10029704.html

The report also mentions the other names in Indian air charter operations, including those who started their business concept offering fractional ownership some years back. Having failed in that concept for various reasons, including the reason that the idea was ahead of it's time a few years ago, some of these companies started full service air charters with their NSOP (Non Sched Operator Permit)issued by DGCA India. Anyway, let's wait and see if this fractional concept work this time around in India or big names like Netjets and Execujet will also need to alter their business plans and provide non fractional air charter services in order to survive. The jury is still out on this one.