Thursday, January 12, 2012

Air Asia - X Cuts Indian routes to Mumbai & Delhi from Malaysia

Source: CNA

You'd be surprised to hear the news that a carrier is cutting the capacity to India. We all used to hear the news how world is looking at India and how carriers are expanding in to India. But the fact is compared to the potential the actual traffic is close to zero. Look at Indonesia or Philippines or even to Srilanka (I stopped comparing to China. They are two generations ahead in each and every single aspect), all these nations are 'attracting' people while we are stopping them at our doors.

The reason sighted by Air Aisa is because of 'higher charges'.
Cut because of rising "airport and handling charges" and visa restrictions hampering travel between India and Malaysia.

If you check the charges the charges in major Indian airports are atleast double compared to the region. Compared with worldclass Changi in Singapore Mumbai charges 2.6 times. Same with Hyderabad, Bangalore & Delhi.

One may argue Singapore need tourists so they might be subsidizing it. Fine, then how about comparing with bangkok or Jakarta or Manila. All these airports charge half or less than Indian counterparts.

The overall cost structure is so terrible, it costs the same for a person to travel to Chennai (3hrs 45min) or Sydney (7 hrs).

Expensive/restricted landing rights, airport charges & bureaucracy coupled with terrible process adherence is crippling the industry and causing a terrible image issue to the country.


No comments:

Post a Comment