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The Analyst Magazine:
Indian Aviation: Flying High
 
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The Indian civil aviation sector is witnessing an unprecedented growth with a host of private airlines taking to the skies. This has altogether redefined the way people in India travel. More and more middle-income class travelers are preferring aircrafts to trains. As the prices of airfares drop and increasing number of people travel by air, the aviation industry is in for good times.

A few years ago, traveling by air was a dream for the average middle-class Indian. The Indian middle-class, which constitutes a major portion of the population, was eager to experience the journey by air. But the major hurdle was the sky-high prices charged by the state-run airlines. The cost of air travel in India was amongst the highest in the world.

These state-run carriers were built on huge costs and as full-service providers they justified these high airfares. With no competition from any front, the state-run airlines enjoyed a monopoly.

In the early 1990s, steps were taken to liberalize the aviation sector and a few private players like NEPC, Eastwest, VIF, Modiluft, Jet and Sahara opened shop. While some of them like Jet and Sahara survived, others like NEPC, VIF and Eastwest closed down. There were attempts made by the Tatas to start their own airlines, but it never really took off. As all the private airlines were also full-service carriers, the quality of service was appreciated but they really did not raise any eyebrows.

 
 

 

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