Setbacks but airlines reach for the sky

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New Delhi: Year 2006 saw major changes in the Indian air transport sector. The government privatised Delhi and Mumbai airports in spite of dogmatic Leftists. However, despite such move, the booming economy in this sector saw crash down in terms of revenue and growth.

All airlines, including Air India (AI) and Indian, placed orders for 480 new aircraft. Experts projected that domestic passenger traffic will reach 150 to 180 million by 2020 with international traffic in excess of 50 million. But the current figures are 64 million and 27 million.

As the Rs 2,300 crore plan of Jet Airways to take over Air Sahara fell through, the AI-Indian merger plan moved ahead.

While the future of Air Sahara remained uncertain, AI started receiving the first of 68 Boeing jetliners – so did Indian. The first of 43 Airbus aircraft to replace its aging fleet arrived in October.

With an increasingly open economy, strong growth in international trade, healthy foreign exchange reserves and increasing foreign direct investment, India is likely to have aircraft fleet of 1,000.

This will also include replacement of the current fleet of 275 aircraft, with an estimated value of $80 billion.

Civil aviation minister Praful Patel promised the new mega entity should emerge by next fiscal year beginning April 2007, something that will optimize fleet acquisition, leverage the asset base, strengthen networks and achieve economy of seats.

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