Page 26 - AAA MARCH - APRIL 2015 Online Magazine

FEATURE AVIATION BUSINESS

the finest full-service airline in India.” however, government officials insist
Rather than joining the low-fare that the new carriers will help improve
bandwagon, the strategy of Vistara has connectivity and make way for greater
been to focus on cities where there is a competition which, in effect, will lead to
demand for a full-service airline. more consumer-friendly practices in the
“Vistara is well capitalized and has a domestic aviation market.
strong startup management team but will It is with this intention that the new
be severely tested in the market,” said Indian government recently granted flying
Kaul. licence to several new airlines that sought
“Tata and Singapore Airlines may be in permits for launching operations in the
a position to establish a more competitive, country.
hybrid business model, offering a high While Ligare Aviation Limited and LEPL
quality product with a lower cost base Projects Limited have been granted the
than incumbent full service carriers,” he Air Operator’s Permit (AOP) or the flying
said. licence, Air Pegasus has just received the
Majority of people in the country are AOP. Two other airlines, Air Carnival and
now used to traveling without any frills, Zav Airways, have been granted the initial
and any new entrant will have to be No Objection Certificate (NOC) by the
prepared to face the domestic market that Civil Aviation Ministry to start scheduled
is dominated by low cost carriers that hold regional services. While Air Carnival
65 percent of the market. proposes to operate in southern India,
“The average Indian passenger and Zav Airways will fly in the north-eastern
the corporate sector are not really ready and eastern regions of the country. Other
to pay a premium for domestic flights that airlines which have been granted the NOC
last around two hours or so,” Dubey said. include AirOne Aviation, Zexus Air Limited,

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