In over 17 years, 5 Indian full service carriers bid adieu; Air India to be alone in the league

Mumbai/New Delhi Nov 10: When Vistara folds up into the Air India Group on Monday, the number of full service carriers in the fast-growing Indian aviation space will come down to just one from five in a span of over 17 years.

Also, the merger that will see Vistara’s 49 per cent owner Singapore Airlines holding 25.1 per cent stake in Air India post the merger will mark the sunset of another Indian airline jointly owned by an overseas carrier after the liberalisation of foreign direct investment norms.

In 2012, Prime Minister Manmohan Singh-led UPA government allowed foreign airlines to buy up to 49 per cent in a domestic carrier, which later resulted in the now defunct Jet Airways securing 24 per cent stake from Gulf carrier Etihad besides the birth of AirAsia India and Vistara.

Vistara is also the only full-service carrier to start operations in the last 10 years.

Since the merger of full-service carrier (FSC) Indian Airlines with Air India in 2007, at least five FSCs dotted the Indian skies.

As years passed by, Kingfisher and Air Sahara faded away while Vistara took flight in January 2015. Kingfisher went belly up in 2012 while Air Sahara, which was acquired by Jet Airways and renamed as JetLite, sank with Jet Airways in 2019.

FSC Jet Airways that flew for 25 years before getting grounded in April 2019 due to financial turbulence is set to be liquidated.

From November 12, the enlarged Air India will remain the country’s lone full-service player.

Coming to Indian carriers with foreign ownership, the first was Jet Airways where Abu Dhabi’s Etihad Airways snapped up 24 per cent stake.

Then came AirAsia India 49 per cent owned by Malaysia’s AirAsia and the rest was with Tatas followed by Vistara where Singapore Airlines holds 49 per cent stake and 51 per cent is with Tata Group.

With rising air traffic and changing travel patterns, many no-frills airlines are dominating the skies worldwide and India’s dominant carrier is IndiGo.

According to a senior airline official, the line differentiating a full service and a low-cost carrier is somewhat blurred.

For instance, some of the budget airlines also offer business class seats.

Among others, FSCs strive to provide more comfort to passengers during travel and the services, including meals, are included in the ticket price.

Also, they mostly operate different types of aircraft and broadly, these airlines focus more on overall network profitability.

In the case of low-cost carriers route-specific profitability, ancillary revenues and mostly single type of planes are among the key elements that help in ensuring cost-effective operations. (PTI)

Hot this week

Pay hike of Assam ministers, MLAs likely as 3-member panel submits report

Full report likely by Oct 30 Guwahati Sept 25: There...

Meghalaya Biological Park Inaugurated After 25 Years: A New Chapter in Conservation and Education

Shillong, Nov 28: Though it took nearly 25 years...

ANSAM rejects Kuki’s separate administration demand, says bifurcation not acceptable

Guwahati, Sept 8: Rejecting the separate administration demand of...

Meghalaya man missing in Bangkok

Shillong, Jan 10: A 57-year-old Meghalaya resident, Mr. Treactchell...

Meghalaya’s historic fiber paves the way for eco-friendly products and sustainable livelihoods

By Roopak Goswami Shillong, Oct 25: From making earbuds to...

Heavy rains, cloudbursts hit Uttarakhand; several people trapped, houses damaged

Dehradun, Aug 29: Heavy rains and cloudbursts wreaked havoc...

Kabul blames Pakistan for airstrikes that killed 3 people in eastern Afghanistan

Islamabad, Aug 29: Airstrikes that Afghanistan's Taliban government blamed...

Tamil actors Vishal, Sai Dhanshika get engaged

Chennai, Aug 29: Popular Tamil actor Vishal on Thursday...

India has turned into ‘oil money laundromat for Kremlin’: Trump aide

New York/Washington, Aug 29: A day after claiming that...

Conrad reviews progress on medical colleges, sports and JJM in Tura review

State to produce 550 doctors annually by 2030s Tura, Aug...

Lyles beats Olympic champion Tebogo in 200 race at Diamond League final

Zurich, Aug 29: Noah Lyles warmed up for the...
spot_img

Related Articles

Popular Categories