http://dnaindia.com/report.asp?NewsID=1008458
Consolidation in the skies <Some fears have been expressed that the deal may lead to monopolistic or duopolistic situations which then result in higher fares. These fears are unfounded. One reason is that five new airlines are awaiting launch. The government also needs to change its policy that does not allow domestic airlines to fly abroad for five years and prevents foreign airlines from flying in India. This policy needs to be replaced by one that encourages competition for the consumer to truly benefit. While the latest deal is among higher cost carriers, airline travel in India is no longer the privilege of the well-heeled. Thanks to low cost airlines, which sometimes offer ridiculously low fares though occasionally their service leaves a lot to be desired. Thriving competition has done away with the monopoly of the state carrier and the bad old days when an air-ticket could be had only if one had contacts in high places, are gone. But the rash of new airlines has also brought its own problems. The budget carriers may not have factored in the high parking costs at India's ramshackle airports and the soaring price of aviation fuel with oil touching $65 a barrel. Sooner or later, budget airlines will have to sell out to the bigger players which have the financial muscle to stay the course. > ------------- Let's hope the Goa government stirs from a laissez fairre approach to civil aviation and takes steps like drastically cutting excise duties on ATF, consolidating the civil enclave at Dabolim, right-sizing Mopa, etc etc in a dynamic way instead of spending its time on silly political games.
