Page 20 - AAA MARCH - APRIL 2014 Online Magazine
P. 20

FEATURE REGIONAL
        FEATURE REGIONAL














































        Regional Power





        Small is beautiful for regional airlines. By Jay Menon

                                            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,”
        India is contemplating to bring     as well as start-ups in India, over the next   Manish Mathur of A.T. Kearney global
        in a new policy for regional        two to three years, as airline companies   management consulting firm says.
        airlines and has even hired a       look for the right kind of aircraft to service   The advent of small and short-haul
        consultant for the purpose          the smaller towns, analysts say.    aircraft, which can land on shorter
        20   ASIAN AIRLINES & AIRPORTS  MARCH / APRIL 2014                      WWW.ASIANAIRLINES-AIRPORTS.COM
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