Study of players in Indian airlines industry

Abstract

Nationalization:-The first airline to start operations in India was Tata Services which came to be known as Tata Airlines and then Air India. In 1953, the government merged the emergent domestic airlines and formed Indian Airlines. For many years, flying was actually an elitist activity because of high prices of tickets. So only the rich could fly. In the more recent years flying, even in India, has become a necessity for business-travel, leisure and travel to foreign countries. India still has huge potential for the growth of its Airline industry. From 2000-2004, there has been a growth of 53.4% in revenues. Also India’s contribution to the Asia-Pacific has increased by 1.5%. This is mainly because of the economic boom in the growing middle class, deregulation of the Aviation industry and the entering of low- cost carriers. Before the 1990s, the Government of India monopolized the Aviation Industry. Post Liberalization:- After liberalization, private sector players were allowed to operate as air-taxi operators but not offering scheduled services. These players, included Jet Airways, Air Sahara, Damania Airways, East/West Airlines, Modiluft. After the repeal of the Air Corporations Act, private carriers were permitted to operate scheduled services. The previous air-taxi operators were granted scheduled carrier status upon fulfillment of certain applicable criteria.