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Strategic tools for the practising manager

KIT

Technopak Advisors / New Delhi March 28, 2006



This week: Indian Aviation Industry (Domestic)

The Indian domestic aviation market is estimated at about 19 million
passengers and is expected to reach 45 to 50 million by 2010.
India is the world's fastest growing aviation market, with the number of
passengers rising by 26 per cent in 2005 alone.
More than 300,000 Indians pay for first-class rail tickets every day,
whereas the number of flights per person is just 0.014 every year.
Opportunities exist across the region in areas such as funding start-up
airlines; airport expansion and modernisation; hotel and resort development;
and tourism infrastructure - including golf courses, theme parks, cruise
terminals, highways, and convention and exhibition centres.

---------------------
Seems to me Goa is very active in downstream areas like golf course, cruise
terminal, convention centre  and expressway planning but it has not resolved
the bottleneck in the upstream area of airport control and expansion
(including multiplication). As a result the intermediate area of hotel and
resort development seems to have come to a standstill. Note that passenger
growth in 2005 was a whopping 26% for the country as a whole. And the
forecast is for an increase of about 5 mllion passengers a year for the next
four or five years. It would seem that a concerted effort needs to be made
to pull down the "Great Wall of Goa" -- at Dabolim and Mopa airports.




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