India’s Airport Economic Regulatory Authority (AERA) is expected to make a final decision on whether to implement a “single-till” to calculate airport revenues in Aug-2010 (DNA, 24-Jul-2010). Airport operators have been fighting for the “dual-till” method to remain in operation, as it ensures better revenues, but both AERA and airlines prefer the single-till method. The method involves the cross-subsidisation of aeronautical revenue by non-aeronautical revenue, while the dual-till method keeps the two revenue streams separate. GMR Group CFO Airports, Sidharath Kapur, stated the single-till method will make it difficult to privatise airports and attract private capital.
Indian authority plans single-till accounting for airports
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Lion Air Group begins international expansion from Indonesia with Batik Air Australia & India routes
The Lion Group is preparing to expand in Indonesia’s international market, with several new routes to Australia, India and East Asia. Lion is the domestic leader in Indonesia, its three Indonesian airline subsidiaries accounting for approximately half of total domestic capacity. However, the group has only a tiny presence in the Indonesian international market, having only five scheduled international destinations.
The full service subsidiary Batik Air has encountered delays in commencing operations to Australia and India but remains keen on serving both markets with multiple destinations. Meanwhile, its Malaysian affiliate Malindo Air is jump starting the group’s entrance in the Indonesia-Australia market with a new fifth freedom route from Bali to Brisbane, which will be launched on 31-Mar-2017.
International expansion is becoming strategically necessary for Lion as Indonesia’s international market is now growing faster than the much larger domestic market. AirAsia and Garuda have already been focusing more on international expansion, widening their lead over Lion in Indonesia’s international market.