Ad Here  
March
April
May
June
July
August
 
 
An enemy’s enemy is a friend The Gulf aviation boom Chennai and Kolkata miss opportunity to grow as Delhi and Mumbai When small is no larger beautiful.. Insurance companies bleeding, yet no decision on increasing FDI limit! CSR and CMI: promise of another Srinivasan Ramanujan... Paytm karo... There was flood of milk. Reason: no milk commissioner! Multi-faceted Venkat A welcome initiative by the judiciary Fall in crude prices help in oil sector reform The Jan Dhan bonanza IPL - no surprise this scam F C Kohli - his concerns all embracing Eternal support for capitalisation of PS banks Bihar elections - the Rajaji formula worked Kulandai was a giant Funding the un-funded Infrastructure funding – lessons learnt A proud Madrasi Alexa – Talking Wikipedia London, London Narayan Tribute – Manikam Ramaswami Moily’s bold thrust A Grand Finale for SN’s MS centenary at the US… Come elections, come advertisements... Shipping woes of Chennai companies Diamond jubilee of Egmore Samskrt School The power-full Hindujas Road development slows down MHC should not return to its old indisciplined ways Towards speedy justice to the lack of interest on the part of these to focus on original research. This despite the much lower costs of such research in India. The industry which thrived on the protection of a closed economy and the advantage of a vast domestic market, has failed to organise its evolution on healthy lines TN – agglomerate land holdings without alienating ownership Land reclamation from sea appears cheaper! The Ports’ Pasha expands into Tamil Nadu Computation of GDP – conundrums continue A friendly business group Which side are you, Montek? Kinetic Karnataka Five star activism stalls development activity Intellectual of rare qualities Revive development banks... Adapt Vajpayee dinner diplomacy For whom the bell tolls? Breaththrough in malaria control The brown list of Venkitaramanan Dr C Rangarajan returns to Chennai An inexplicable neglect Tough task taking states together How Air-India loses customs... Preserving for the future An informal presentation - analytical, forward locking... Waning interest in public discussions… L&T: focus on infrastructure and more infrastructure… Modi storms Silicon Valley Godspeed, Chief Minister JJ More Shakthi to Das’ elbow Naidu’s return augurs well for Seemandhra Like Hinduism: many paths to reach God... Valli, they are more marginalised GNS - 100: our first subscriber The star of Spencers is no more No mega rail project for Tamil Nadu The Swadeshi Trump Engineering seats go abegging Tatas moving out of urea production... IAS invades NDDB... The why of tax incentives Solar thermal shines… Russi Mody – a tribute Not just in-laws (and outlaws); they’ve renowned academics at the helm! Shanti and Sadhana through Music Where is Rajaji? S Ramanathan – a versatile musician, musicologist S V Raju – a ‘good’ true liberal Limit foreign borrowings to hi-tech, export potential projects... Rahman at CIC Remembering Indira Sivasailam... Delhi Chalo... Streamlining mandatory third party cover Tatas moving out of urea production... Readers' Mail Another Indian music maestro at the UN A Grand Finale for SN’s MS centenary at the US… Liberal imports idling indigenous capacities When Ratan Tata visited SRM Reliance’s TV – 18 ready to launch Tamil News Channel Delhi is distant A more liberated TN… Welcome GST TGS- The king storyteller Lalu’s envy, India’s pride CII projects higher growth… Shale gas and its shallow future Poor representation for Kerala and TN in Cabinet Editor's Says Robber barons everywhere Editor's Notes No Maha Koottani in TN... He continues the focus on social amelioration The rise and fall of Annamalai University Modi and the lady The ‘Jayanthi Tax.’ Sri Lanka votes for change Airlines in India: cost and space Welcome thrust on trade in Modi’s foreign visits... Discoms deserve better… Odisha: spectacular win by Naveen Patnaik Fortune for Indian Airlines R Sridhar steps down as CEO of Shriram Capital Scientists urged to take up farmer-oriented research A rich pool of talent not utilised…. IPL type auction for VCs? GM Technology at last! Bihar – Nitish Kumar adopts the Lalu model Poor quality of university VCs TN accounts for the largest recruits by the IT sector Demise of a media baron... Revving up the manufacturing sector Nuclear power at the nucleus CRS, a jewel among managers, is no more. The balancing act Fuel for thought The few handicaps... Tax agriculture Increasing non co-operation of state leaders The rise and rise of KCP Muffled voices for merit… Make standards certification mandatory... Medical costs hit the roof... B H Kothari - a tribute Measuring roof tops in terms of KW/MW A yen for wastage… Gay abandon in pricing Mu Sigma – is no more Small units prefers to remain small... Where a state respects its litterateurs… This scant respect for Law EEC at the National Media Centre China invests in India Building loyalty through the stomach Making ‘my Amaravati’... The nuclear option Build close rapport with business leaders All eyes on Sankara Nethralaya Solar, solar everywhere … Focus on quality of power - its only around 170-180V Should we change the official year? PC’s preference for professionals More Shakti to resource mobilisation... EVM is tamper-proof He saved millions from starvation... Varuna (rain) in 2015; Vaayu (air) in 2016. Chennai devastated Recognition to role of NBFCs.... Delhi returns to BJP Marketing expert Balagopal is no more Put expensive assets created to use... Online not in line with brick and mortar businesses... Cement prices continue to rise… Kudos to NDTV... Rs.1600 crore paper board plant of TNPL For whom the MIDS bell tolls? West Bengal: mindless malignancy Tihar, Puzhal not different from Parappana Agrahara Wise Presidents Polls and promises A professional at the helm of IRDA... Tribute – UCAL Selvan… Fortune 500 review Cutting the nose to spite the face Quality education through the PPP mode Whistle-Stop Tour of Raghuram Rajan TIAM turns a full cycle Convulsions in The Hindu Don’t seem to feel the pulse… Things happen by accident and not by design... Tribute Music happens Noble nonagenarians... Colour-Chem’s colourful KRVS CIPET hqrs to stay at Guindy – for the present? Contrarian cousins Permanent secretariat for TN GIM Align crops to agro climate endowments… PPP mode for upgrading Corporation Hospitals Strengthen the base... Telangana in top gear… Return to king coal for urea... Padma Bhushan for A Ramakrishna Banning booze... Maximising the micro pricing … Excel Generators provide the vital back-up Sweeter prospects for sugar New IT products of Ramco in the pipeline… WTO Meet: resolved to meet again When online building permits work…. TELANGANA at last…BUT Boy, can you beat these? …and of a popular trade leader Wanted: a second airport for Chennai Why land prices zoom in TN? A C Muthiah – his munificent bequeaths to science Why this malaise in medical education? More tributes to GR Auto components surge… Secularism and anti-Hinduism Haul over the coal When the President was rendered homeless… Vibrant Gujarat TN-leverage strength of BHEL, NLC... SoA @ 80 Silver Years of Madras Musings When TN politicians can emulate Kerala's Shaming of Tamils by Tamil farmers at Delhi No engine for this car Naidu will soon build a new Hyderabad Of course, Gujarat is vibrant Inflation: are we emulating Argentina and Brazil? More heat than light Welcome focus on core competence ONGC at KG Basin L&T- the specialty of special purpose vehicles Pharma – overdose of copying Sweet news for TN sugar mills Mersal magnified Quality silica from Neyveli Adharma of opposition politics When nations steal growth from one another… Lesson from Chandrababu Naidu Welcome changes that testify to Jayalalithaa’s return to health Tribute – M V Murugappan Roaring Ro-Ro facility A glass full of corruption Air Asia India will set new benchmarks for budget travel Gas is the way forward Protest masters... Parliament in paralysis... Plummeting profits of PSBs Delhi is distant… The sea- saw battle continues... Cleaning Ganga – relocate tanneries and install electric crematoria The ‘Ayyo-yes’ is no more A think tank for Chennai
 
How Air-India loses customs...

I have in the past mentioned the failure of the national carrier Air-India to derive the maximum benefit out of the boom in air travel. Post the 1990s the massive increase in traffic was initially grabbed by the European giants like Lufthansa and British Airways. Surprisingly, despite bulk of this traffic moving towards the US, large American airline companies have not tapped this business. They have been content to leave the huge potential to be exploited by their partners in the airline alliances like Star Alliance.

After 2000, synchronising with the improvement in technology to fly over long distances with bigger aircraft, countries in the Gulf region focused on the airline business. These countries created productive infrastructure on the ground and invested massively in sophisticated aircraft.  With vast areas of land available in these desert kingdoms, in quick time sophisticated ground facilities were created. In quick succession Emirates, based in Dubai, Etihad in Abu Dhabi, Gulf Air in Bahrain along with their older counterparts of Saudi Airlines and Kuwait Airlines, have been investing massively and winning handsome custom. With much lower airport landing and takeoff costs and with the ability to fly non-stop over long distances, these airlines have been able to earn a lot of custom from Indians travelling to the US, African and European countries and other destinations.

Mounting losses with the consequent inability to invest continuously in the acquisition of new aircraft in large numbers, Air-India has been missing out this boom. Many of the bilateral agreements with several nations have been benefiting its partners and not so much Air-India. The corporation is yet to come out of the effects of its merger with Indian Airlines, loading it with an enormous under-employed workforce, diversified aircraft and ineffective management with bureaucratic control. Its once huge market share within the country has suffered severe erosion. With the recent new policy that permits newer entrants in the business to fly overseas, this competition is bound to intensify further.

Despite the large custom from South India, Air-India doesn’t offer direct, non-stop flights to Europe/US. The passengers are ferried to Delhi/Mumbai for such direct flights entailing higher travel time.

The policy of continuous recapitalisation by the government has mostly gone to keep the airline afloat. A bold new plan to revamp the finances and infusing substantial fresh capital can still enable this Indian icon to regain some of its past glory.

 

Author :
Reported On :
Sector :
Shoulder :
RELATED NEWS
ABOUT IE
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
 
PRIVACY POLICY
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
TERMS AND CONDITIONS
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
 
CONTACT US
S-15, Industrial Estate,
Guindy,
Chennai - 600 032.
PHONE: +91 44 22501236
EMAIL: indecom1968@gmail.com