NEW AVIATION ERA BECKONS

Though new airlines are coming up, how IndiGo and Tatas shape up will decide the next phase of Indian aviation

When Akasa Air flew its maiden flight on 7th Aug ‘22, it marked a new era in Indian aviation.

After almost a decade ridden with bloodbath, mergers, closures, bankruptcies and even one airline promoter turning fugitive, a new carrier was taking wings.

However, Akasa, and soon-to-be-relaunched Jet Airways are starting operations at a time when the covid-19 pandemic has brought a new, restricted normal for airlines, whose main competitors are now Zoom and Google Meet as people prefer video meets and curtail travel to a minimum. Also, the old bugbear of high fuel prices is back.

As they recover from the drop in demand due to coronavirus and face a rise in costs due to the Russia-Ukraine war, most Indian airlines are beefing up in hopes of a revival as the global economy picks up.

While still making losses, they are putting in place blocks intended to serve them well once the sector recovers from the pandemic. Each is adding planes, right-sizing, appointing new chief executives and settling old issues.

So how are airlines stacked up as they fly into the changing world?

GROWTH OPPORTUNITY

India is the world’s fourth largest aviation market, behind the US, China and the UK, with domestic travel accounting for 2.2% of the world’s total revenue passenger kilometres in March ’22. But it is way below US domestic (25.6%) and China domestic (17.8%).

India has 0.13 seats per capita compared to 3.1 in the US and Australia.

Even emerging market peers have higher numbers than India. China’s seat per capita is 0.49. Brazil is at 0.57 and, Russia at 0.61.