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Pvt airlines capture 60% of market share: Survey
Our Bureau
New Delhi
,
July 7
FOR the second successive year, private airlines have managed to capture the lion's share of the domestic aviation market.
The Economic Survey for 2003-04, tabled in Parliament on Wednesday, states that the airlines now account for 60.1 per cent of the domestic market, up from a market share of 52.6 per cent recorded in the previous Survey tabled last February.
Sources feel that the efforts of State-owned Indian Airlines (IA) to gain a larger market share have been hampered by the lack of aircraft capacity. IA has been waiting for the past two years to get government clearance for its proposal to acquire up to 43 Airbus aircraft. The fleet acquisition plan is valued at more than Rs 10,000 crore.
Apart from IA and three other scheduled private carriers, there are 37 operators providing air taxi or non-scheduled air transport services in the domestic sector.
The Survey also has some good news for the civil aviation sector.
Noting that air traffic trends in both the domestic and international sectors have been "encouraging," it points out that domestic traffic grew by 9.3 per cent during January-December 2003 compared to the same period in the previous year.
It also highlights the heartening fact that demand for travel to India from other countries during the winter of 2003 increased by nearly 23 per cent. Dwelling on the Airports Authority of India (AAI), which earned a profit after tax of Rs 282 crore during 2002-03 compared to Rs 267 crore in the previous year, the Survey has estimated that the profit after tax for 2003-04 will be Rs 294 crore.
The document also talks about efforts being made by the government to modernise and restructure the airports in Mumbai and Delhi as also greenfield airports coming up in Bangalore and Hyderabad with private sector participation.
It also acknowledges the fact that the wide-ranging recommendations of the Naresh Chandra Committee would be used as inputs to draw up a comprehensive civil aviation policy.
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