Kolkata Netaji Subhas Chandra Airport

Indian Aviation in 2013/14 Part 3: Global operators bid for Chennai and Kolkata airport management

This is the third in a four-part series of extracts from the full 200+ page India Aviation Outlook Report for 2013/14. The first extract looked at the changing dynamics of the airline sector on domestic and international routes, while the second examined the policy vacuum that persists in India and the impact this has on the viability and development of the sector.

This third part addresses key issues in airport and airspace infrastructure, in particular the AAI's challenges in offering management contracts for two of India's major airports and the prospects for regional hub operations - or not.

The next and final extract will consider this year’s outlook for traffic, capacity, yields and airline profitability.

Kingfisher to join oneworld in Feb-2012 becoming first alliance-affiliated carrier in India/SAARC

Kingfisher Airlines will become part of oneworld from 10-Feb-2012, becoming the first carrier from the Indian subcontinent to join any of the global airline alliances. Air India’s application to become a member of the Star Alliance was rejected at the end of Jul-2011 while Jet Airways is yet to announce its alliance plans but is said to be in discussions with both Star Alliance and SkyTeam (SkyTeam is reportedly in discussions with a number of Indian airlines, including LCCs). Kingfisher Airlines will also be the first of three airlines to join oneworld in 2012, in its largest membership expansion drive for five years, with airberlin set to follow shortly after Kingfisher and Malaysia Airlines joining later in the year.

Joining oneworld will give Kingfisher Airlines, currently facing considering financial pressures, global visibility, brand awareness and scope to improve revenue. According to reports in The Business Standard, Kingfisher is expecting at least a 5% increase in revenue through codeshare agreements with partner airlines. There will also be cost savings through common use of inventories and joint purchases. oneworld’s continued confidence in the struggling carrier is also a positive boost for the carrier, which has significantly reduced capacity and is currently seeking INR6.7 billion (USD127 million) in short-term working loans.

Singapore-India market poised for rapid growth as IndiGo eyes large operation at Changi

IndiGo is aiming to quickly expand its new operation at Singapore and tap into fast-growing demand at the lower end of the Singapore-India market. IndiGo expects to be serving Singapore’s Changi Airport with six daily flights by early next year, which would make it the largest Indian carrier and the second largest carrier overall in the Singapore-India market after Singapore Airlines. The Indian low-cost carrier launched flights to Singapore last week with a single daily A320 frequency from its main base at Delhi.

India's domestic aviation market shows rapid growth in first half

On the surface, India's aviation industry looks to be in rude health, but behind the strong headline traffic figures is growing financial pain. India's airlines reported continued strong domestic passenger growth of 22.3% in Jul-2011 following on from an 18% expansion in the first half of the year. India is now the ninth largest and fastest growing domestic market in the world. The Indian government anticipates that India would become one of the three largest markets in the world by 2020.