Page 20 - AAA MARCH - APRIL 2014 Online Magazine

FEATURE REGIONAL
FEATURE REGIONAL
Regional Power
Small is beautiful for regional airlines. By Jay Menon
India is contemplating to bring
in a new policy for regional
airlines and has even hired a
consultant for the purpose
20 ASIAN AIRLINES & AIRPORTS MARCH / APRIL 2014
EmErging rEgional airlinEs in Besides emerging new regional
India are expanding fleets with the new airlines, almost all domestic carriers
generation of smaller, faster, more fuel- are looking to connect smaller cities
efficient passenger aircraft. with smaller aircraft for expansion. With
Start up Indian carrier Air Costa recently increased hub congestion and a logical
placed a US$2.9 billion order for 50 upgraded levelling of demand for metro-to-metro
E2 line-up airplanes from Embraer, to be routes, India’s aviation industry is poised
delivered from 2018 onwards. for a substantial increase in traffic
The deal is the biggest order for the between regional hubs and tier II and tier
regional kind of aircraft from India. III towns.
If anything, the deal is a validation of “If India’s airlines are to make the most
the assessment that the regional airlines of this growing demand, they will need to
is set to drive the aviation growth in India. expand their fleets. And while fleet growth is
The regional aircraft market is likely to occur across all aircraft categories,
expected to see at least 20 to 30 firm we believe aircraft designed for regional
orders coming in from established ones service (60–120 seats) will grow fastest,”
as well as start-ups in India, over the next Manish Mathur of A.T. Kearney global
two to three years, as airline companies management consulting firm says.
look for the right kind of aircraft to service The advent of small and short-haul
the smaller towns, analysts say. aircraft, which can land on shorter
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