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Tuesday, May 03, 2005

Aviation Woes

Two latest scenario observed by me..

#1 Air bubble (budgeted,,,,)

When I got the following promotional Ad from Valueair, the immediate thought which came up to mind was - whether these guys are making profits?

ValueAir promotion Posted by Hello

Accrdg to the above promo ad, ValueAir is giving cash vouchers, free tickets etc. as a part of its First Anniversary celebrations.

It is becoming like the dot com era. So many companies sprang up at that time and the bubble burst at a later stage. Other than the giant Singapore Airlines & its subsidiary Silkair, lots of new budget airlines hv now entered the Singapore aviation industry. (like AIRASIA, VALUEAIR, JETSTAR ASIA, TIGER AIRWAYS).

In India, this fever is being spread thru AirDeccan.

So, will there be a burst soon? (read this article)

Or else, can we expect some corrections (thru consolidation) in the near future, which can make the industry healthy?

Anyhow, the passengers are really enjoying the feast now. (I really missed this opportunity, since I had thrown my last ValueAir boarding pass already).

#2 Fighting Big Brothers.. ;-( ;-(

The way Airbus & Boeing are churning out Aircrafts, to meet their numbers, makes me to think about the traffic it will create. In future, will it not be like Chennai's Parrys Corner or Bangkok's Ratchadapisek Road, which are clogged with heavy traffic always? God needs to create some more air space (!!!!)

Another issue is that all the big airlines are buying the new aircrafts and the old used aircrafts are changing hands to the budget airlines & not-cash-rich airlines. This will definitely create problems for the passenger safety in addition to the multiple air traffic dangers.


Blogger Kaps said...

Definitely there will be a shakeout in South East Asia. there is too much capacity and the budget airlines don't know where to expand. Only S'pore, Malaysia, Thailand, HK and Australia are keen on promoting this concept of budget airlines. Indonesia is already trying to curb the same.

However the Indian budget airlines are expanding the market by converting rail / bus travellers into air travellers. Hence I don't see a consolidation / shake out in India in the near term. The infrastructure in Indian airports need to be upgraded to meet this surge in traffic (given the fact that most of the traffic passes thru Delhi and Mumbai).

I don't agree with the fact that most of the budget airlines are sourcing old planes. I hv read lot of reports saying that Budget airlines are buying directly from Airbus and Boeing. Flying a budget airline doesn't necessarily mean that you are compromising on safety.

Tuesday, May 03, 2005 7:50:00 PM  
Blogger Chakra Sampath said...

As far as old flights are concerned, established budget airlines (in Europe) buy new aircrafts, whereas the newer entrants like Air Deccan & Kingfisher do get the older ones. So, passenger safety is one issue we must look at.

It wd be better if these budget airlines concentrate on smaller airports of India (like Madurai, Coimbatore, Trichy and even Pondy)as that would help build trade in that area rather than plying between metros. (They may be doing this already.. I am not sure).

Wednesday, May 04, 2005 2:15:00 AM  
Blogger Adaengappa !! said...

AI that flies out of US are about 20-30 yrs old as compared to other european operators..Passengers safety..kadavul kaiyil..

Wednesday, May 04, 2005 3:17:00 AM  

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