Air Kerala is likely to obtain all clearances and launch its operations in the middle of April 2015. The carrier will start as a regional carrier, only to switch to Gulf flights at the first opportunity, when the rules are changed!
Air Kerala, a proposed regional carrier, is likely to obtain the clearances and may launch operations in the middle of April.
The domestic air traffic is controlled upto 80% extent by IndiGo, Jet Airways, SpiceJet and GoAir as members of the Federation of Indian Airlines (FIA), with Air India have left them a couple of months ago. FIA are lobbying against the withdrawal or amendment to the 5/20 Rule that the Civil Aviation Ministry may introduce as this will give an unfair advantage to both Vistara and Air Asia India.
It is a question of time before this change is brought about. In addition to Vistara and Air Asia India, a strong contender to support this move would come from Air Kerala when it begins its operation. Practically, every single family in Kerala has at least one member of the family working in the Middle East and the expatriate population of Keralites is the largest segment of Indians in the region. Air India will therefore face toughest competition from this new airline, which will start as a regional carrier, only to switch to Gulf flights at the first opportunity, when the rules are changed!
As was expected by the air travellers, the Tata-SIA partnered Vistara began its maiden flight on 9th January with its brand new A 320-200s with 148 passengers. It has three aircraft, which will expand to six by April. Presently the flights are from Mumbai, Ahmedabad and New Delhi.
Because of the wintry conditions in the next few weeks Vistara has plans to start its flight schedules to cover new destinations like Goa, Hyderabad, Bengaluru, Pune and Guwahati. It may be remembered that Vistara is the only domestic airline that has 3 separate classes to meet the exacting needs of its customers.
IndiGo, India's biggest airline by market share with a 36.1% share of the domestic passenger market, plans to lease more planes to face serious competition from both Vistara and Air Asia India. It has a current fleet of 88 airbus A 320 aircraft and is doing all it can to reach the magic figure of 100 planes by this summer! It may be remembered that Jet Airways holds the second slot with 23.3% market share. In the meantime, despite the losses incurred and heavy in debt, other carriers like GoAir, SpiceJet, Air India and Jet Airways continue to slash down fares for 90 days advance booking due to the lean season ahead. Not to be outsmarted, IndiGo also followed suit by cutting fares for travels between 16th January and 30th April.
Press reports indicate that Ajay Singh, a co-founder of Spice Jet way back in 2010, is now returning to take control of the carrier and is expected to take full ownership and management of the company, once the required formalities are completed. It appears that the existing promoters (Marans) do hold warrants that convert into equity in April 2015 and 2016 and the full details are with the Ministry of Civil Aviation. Further announcements in this regard are expected in due course.
In the long run, it would be the survival of the fittest who can serve the air traveller in the country. It is gratifying to note that Tatas who pioneered the airline business in the country are now back in the field and it is hoped, before long, they would show the way to others.
(
AK Ramdas has worked with the Engineering Export Promotion Council of the ministry of commerce. He was also associated with various committees of the Council. His international career took him to places like Beirut, Kuwait and Dubai at a time when these were small trading outposts; and later to the US.)
