I think the immediate outcome might be more code-share agreements between international airlines and our Indian ones. Given the shaky state of most of our airlines, I doubt many can actually step upto the plate and take advantage of this opportunity
Hopefully, in the next 0.5 year, we will see more international flights by the LCCs (most likely will be Middle-East and South-East Asia routes). I'm hoping to see some more competition on the India-HKG route as well (there's nearly a 10K difference between DEL-HKG and DEL-SIN for example)
PVDtoDEL
Feb 15, 12, 9:26 pm
It won't make much of a difference - AI hasn't really been blocking other airlines for the last few years anyway...
simz
Feb 15, 12, 11:11 pm
I think this would be great for the other airlines of India.. The reason most international airlines are ruling the routes from India was because of the stupidity of AI.. Now that's out of the window.. Though I agree with Indialouge that given the shaky state of affairs, it will take slightly longer (say about 1-2 years).. But Jet would surely take advantage of this, as would Indigo.. and if KF survives, then they wouldn't be far behind..
PVDtoDEL
Feb 16, 12, 12:03 am
I think this would be great for the other airlines of India.. The reason most international airlines are ruling the routes from India was because of the stupidity of AI.. Now that's out of the window.. Though I agree with Indialouge that given the shaky state of affairs, it will take slightly longer (say about 1-2 years).. But Jet would surely take advantage of this, as would Indigo.. and if KF survives, then they wouldn't be far behind..
As I said, AI hasn't been hogging international route authorities any time recently, so this will have basically no effect whatsoever. The other carriers in India are for the most part free to fly wherever they want already...
jasepl
Feb 16, 12, 1:03 am
I think this would be great for the other airlines of India.. The reason most international airlines are ruling the routes from India was because of the stupidity of AI.. Now that's out of the window.. Though I agree with Indialouge that given the shaky state of affairs, it will take slightly longer (say about 1-2 years).. But Jet would surely take advantage of this, as would Indigo.. and if KF survives, then they wouldn't be far behind..
How? Where exactly have any of the private airlines been prevented from flying in recent times? Nowhere, that's where. Certainly not on any scale that would affect their fortunes in any way.
Their current predicament is largely a result of their own mismanagement and laundry-list of failings, with little to do with AI, government or ministry.
Keyser
Feb 16, 12, 1:16 pm
It won't make much of a difference - AI hasn't really been blocking other airlines for the last few years anyway...
very true....i don't see this making any difference....
simz
Feb 16, 12, 1:44 pm
Ofcourse it's going to make a difference.. AI block specific routes on international sector, claiming they are interested in flying them. As there are only so many slot to go around, with AI blocking them and not flying those routes, the international airlines flying those routes fly full capacity. Given their load factors, they can afford to offer better prices..
Now this monopoly gone out of the window, Jet, Indigo and KF can take up those slots and start flying. Also, going forward, AI won't have the first right of refusal, which means as soon as a new slot comes up, Jet/KF/Indigo would have the right to claim it.
This rule will make a world of difference.. Just not tomorrow morning..
razMJ
Feb 16, 12, 2:17 pm
I don't see a great difference because of this that may come very soon, but in the long term if any of the three airlines would be strong enough to compete strongly in the future, then it makes a difference. For now as AI is too weak to hog capacity, and 9W and IT are too weak to step up to compete because of this, not much difference.
To the LCCs however, they may gain a little on Short-Medium Haul International Markets, especially to the Gulf and South East Asia. But its definitely not going to affect long-haul routes (like mine) much for a while.
PVDtoDEL
Feb 16, 12, 9:26 pm
Ofcourse it's going to make a difference.. AI block specific routes on international sector, claiming they are interested in flying them. As there are only so many slot to go around, with AI blocking them and not flying those routes, the international airlines flying those routes fly full capacity. Given their load factors, they can afford to offer better prices..
They used to do that, especially to the USA. Then, openskies was signed, and that isn't really a problem any more.
AI hasn't been doing this recently, so this won't make a difference. In fact, I'd even venture to say that if AI was doing it still, this new policy would not have been approved.
jasepl
Feb 16, 12, 10:51 pm
If anything, one could argue that AI were forced to pull out of several routes to make way for the others.
And let's pretend for a minute that the ministry is indeed preventing others from flying to any new city.
If so, where exactly is it that Jet or Kingfisher or GoAir want to go? Hell, where are they capable of going to, seeing how they can't even make money on basic bread-and-butter routes?
Don't ever mistake me for being an Air India supporter; I'm not. I've been wanting AI dead and gone for a long time now.
The whole blocking-Jet-to-favour-AI was barely truthful in the past and is little more than a blame-someone-else-for-our-miserable-failures ploy, by the airlines and their fan clubs.
What they all need (AI included) more is a clue. Not the right to fly where they feel like.
UA Fan
Feb 21, 12, 11:22 am
Ofcourse it's going to make a difference.. AI block specific routes on international sector, claiming they are interested in flying them. As there are only so many slot to go around, with AI blocking them and not flying those routes, the international airlines flying those routes fly full capacity. Given their load factors, they can afford to offer better prices..
Now this monopoly gone out of the window, Jet, Indigo and KF can take up those slots and start flying. Also, going forward, AI won't have the first right of refusal, which means as soon as a new slot comes up, Jet/KF/Indigo would have the right to claim it.
This rule will make a world of difference.. Just not tomorrow morning..
Agreed. Excellent move BTW. When exactly did this happen?
It is just unethical for govt to have such rules as it creates an uneven playing field.
razMJ
Feb 23, 12, 12:20 pm
It is just unethical for govt to have such rules as it creates an uneven playing field.
That's true
Yaatri
Feb 23, 12, 1:13 pm
Agreed. Excellent move BTW. When exactly did this happen?
It is just unethical for govt to have such rules as it creates an uneven playing field.
As the de facto owner of AI, it makes sense for the owner to afford eve ry possible advantage to AI. But as the Government, it's wrong for GoI to put other airlines at a disadvantage. Hence, it's wrong for GoI to own AI.
Yaatri
Feb 23, 12, 1:15 pm
Ofcourse it's going to make a difference.. AI block specific routes on international sector, claiming they are interested in flying them. As there are only so many slot to go around, with AI blocking them and not flying those routes, the international airlines flying those routes fly full capacity. Given their load factors, they can afford to offer better prices..
Now this monopoly gone out of the window, Jet, Indigo and KF can take up those slots and start flying. Also, going forward, AI won't have the first right of refusal, which means as soon as a new slot comes up, Jet/KF/Indigo would have the right to claim it.
This rule will make a world of difference.. Just not tomorrow morning..
You are joking right? KF can hardly operate its schedule. Maybe in Mallya's world IT can start more flights, nonstop from every where to every where and control markets around the world. :D
UA Fan
Feb 23, 12, 1:18 pm
As the de facto owner of AI, it makes sense for the owner to afford eve ry possible advantage to AI. But as the Government, it's wrong for GoI to put other airlines at a disadvantage. Hence, it's wrong for GoI to own AI.
Agreed.
razMJ
Feb 23, 12, 1:45 pm
As the de facto owner of AI, it makes sense for the owner to afford eve ry possible advantage to AI. But as the Government, it's wrong for GoI to put other airlines at a disadvantage. Hence, it's wrong for GoI to own AI.
Double agreed
jasepl
Feb 23, 12, 8:23 pm
As the de facto owner of AI, it makes sense for the owner to afford eve ry possible advantage to AI. But as the Government, it's wrong for GoI to put other airlines at a disadvantage. Hence, it's wrong for GoI to own AI.
Absolutely. But on the flip side, we've heard all kinds of stories about AI/IC being forced to stop flying several routes to make way for Jet and Kingfisher. Hell, we've even heard theories about Goyal-induced pilot strikes at AI!
Whatever the truth is, the fact remains that no one's been really held back over the last few years. Whatever problems they're facing are of their own creation. And any removal of restrictions, whilst lovely in theory, is going to make zero difference to their predicament.
Yaatri
Feb 26, 12, 9:18 am
Absolutely. But on the flip side, we've heard all kinds of stories about AI/IC being forced to stop flying several routes to make way for Jet and Kingfisher. Hell, we've even heard theories about Goyal-induced pilot strikes at AI!
Whatever the truth is, the fact remains that no one's been really held back over the last few years. Whatever problems they're facing are of their own creation. And any removal of restrictions, whilst lovely in theory, is going to make zero difference to their predicament.
I reciprocate your agreement with mine on the points raised in the second paragraph. Govt should not be in the business of managing markets. The two issues stem from the same cause. Govt's interference in markets. Govt's job ends with regulations and their enforcement. Govt managing the market is just as bad as Govt managing an airline.
I absolutely agree that IT's and 9W's problems are of their own making.
GUWonder
Feb 27, 12, 3:34 am
As the de facto owner of AI, it makes sense for the owner to afford eve ry possible advantage to AI. But as the Government, it's wrong for GoI to put other airlines at a disadvantage. Hence, it's wrong for GoI to own AI.
Well stated. Fortunately or not, the government is of split opinion and clouded mind.
razMJ
Feb 28, 12, 2:52 pm
Well stated. Fortunately or not, the government is of split opinion and clouded mind.
True
AA_EXP09
Feb 28, 12, 3:00 pm
You are joking right? KF can hardly operate its schedule. Maybe in Mallya's world IT can start more flights, nonstop from every where to every where and control markets around the world. :D
There's a reason he said 'if'
GUWonder
Feb 28, 12, 4:31 pm
There's a reason he said 'if'
In the relevant post quoted by Yaatri, "if" is nowhere to be found in that which was quoted.