Half-a-dozen new regional airlines are expected to start operations this year, despite a majority of the existing companies recording a combined loss of over Rs 10,000 crore.
Star Aviation, Zav Airways, King Airways, Sky King Aviation, Premier Airways and a cargo carrier have received permission to import aircraft and start operations in the country.
Chennai-based Star Aviation, promoted by Dubai-based real estate company ETA Star, is likely to be the first to fly.It will start operations in June with three Embraer 72-seater aircraft initially and provide connectivity to tier-II cities, mostly in south India. The airline will have a 10-aircraft fleet strength and will invest $300 million in the next 18 months. Star Aviation plans to connect Hyderabad, Madurai, Ahmedabad, Visakhapatnam, Bangalore and Kochi with Chennai, the airlines spokesperson said. It will be a full-service carrier with a single-class configuration like another Chennai-based carrier, Paramount Airways.
Kolkata-based Kishore Zaveri-owned Zav Airways is another regional carrier planning operations in the east and north-east, with two Bombardier 80-seater and 70-seater planes.
King Airways will focus on north India and Sky King Aviation on the north-east.
26 December 2009
MARKET SHARE OF INDIA AVIATION PLAYER
| Name of the players | Market Share |
| Kingfisher Airlines and Kingfisher Red (previously Air Deccan) | 28% |
| Jet Airways and Jet Lite (previously Air Sahara) | 25% |
| Air India and Indian (previously Indian Airlines) | 16% |
| IndiGo | 14% |
| SpiceJet | 12% |
| GoAir | 3% |
| Paramount Airways | 2% |
| MDLR Airlines | 0.004% |
indian aviation report
India is one of the fastest growing aviation markets in the world. With the liberalization of the Indian aviation sector, the industry had witnessed a transformation with the entry of the privately owned full service airlines and low cost carriers. As of May 2006, private carriers accounted for around 75% share of the domestic aviation market. The sector has also seen a significant increase in number of domestic air travel passengers. Some of the factors that have resulted in higher demand for air transport in India include the growing middle class and its purchasing power, low airfares offered by low cost carriers, the growth of the tourism industry in India, increasing outbound travel from India, and the overall economic growth of India.
In addition to these factors, the emphasis on modernization of non-metro airports, fleet expansion by airlines, service expansion by state owned carriers, development of the maintenance, repair and overhaul (MRO) industry in India, opening up of new international routes by the Indian government, establishment of new airports and renovation and restructuring of the existing airports have added to the growth of the industry.
However, in mid-2006, many airline operators announced large losses. Analysts opined that a combination of factors such as high aviation turbine fuel (ATF) prices, rising labor costs and shortage of skilled labor, rapid fleet expansion, and intense price competition among the players were responsible for the losses in this sector. The problem was also compounded by new players entering the industry even before the existing players could stabilize their operations. It was estimated that the industry as a whole could face losses of over Rs. 22 billion in 2006-07. Some experts expect the industry to consolidate in the near future. The government also was keen to restrict the losses in this sector by closer scrutiny of the business plans of new entrants, conducting quarterly financial audits, etc.
In addition to these factors, the emphasis on modernization of non-metro airports, fleet expansion by airlines, service expansion by state owned carriers, development of the maintenance, repair and overhaul (MRO) industry in India, opening up of new international routes by the Indian government, establishment of new airports and renovation and restructuring of the existing airports have added to the growth of the industry.
However, in mid-2006, many airline operators announced large losses. Analysts opined that a combination of factors such as high aviation turbine fuel (ATF) prices, rising labor costs and shortage of skilled labor, rapid fleet expansion, and intense price competition among the players were responsible for the losses in this sector. The problem was also compounded by new players entering the industry even before the existing players could stabilize their operations. It was estimated that the industry as a whole could face losses of over Rs. 22 billion in 2006-07. Some experts expect the industry to consolidate in the near future. The government also was keen to restrict the losses in this sector by closer scrutiny of the business plans of new entrants, conducting quarterly financial audits, etc.
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