Interesting reading

Aircraft fail to keep up with India's rising class
From Ashling O’Connor in Bombay

THE boom in the aviation business has caused so much congestion in the skies over India that the Government is planning to double the number of aircraft permitted in the airspace above metropolitan airports.
The proposal to cut the distance between commercial jets from 50 nautical miles to 15 and halve the height separations from 2,000ft to 1,000ft is a symptom of India’s infrastructure failing to keep pace with the growth in private enterprise.



The burst of activity in the domestic sector in the past three years has meant that there is a multitude of carriers vying for precious landing slots. The result is tedious circling before landings, delayed flights, angry passengers and greater fuel costs.

The move to double the aircraft to airspace density is within international safety standards, but there is unease about the additional pressure on already overstretched air traffic controllers.

Last year, 21 near-misses involving commercial aircraft were reported in India, a third more than the previous year.

Civil aviation officials say that half the country’s airports do not have radar but rely on radio communications from pilots. “We should have started about six or seven years back, but some giant steps are being taken,” D. K. Behera, general secretary of the Air Traffic Controllers’ Guild India, said. “We have improved our ground infrastructure and we have procured all-new systems.”

Market liberalisation in the 1990s encouraged the launch of new airlines to cater for India’s ambitious middle classes. Half a dozen have been launched since 2003 and up to another 12 are awaiting permission to take off.

Indian airlines were among the biggest spenders at the 2005 Paris Air Show, placing orders worth $12 billion, and this month Boeing upgraded its long-term sales forecast for India to 856 new aircraft.

Analysts forecast the passenger market to grow by a third this year. Encouraged by an average fare of £30, about 25 million passengers flew around India in 2005. The figure is expected to rise to more than 50 million by 2010.

Yet most carriers are flying half-empty. Over-capacity, coupled with high fuel costs, the world’s highest landing and parking fees, and a virtual doubling in the salaries of pilots and engineers, whom India cannot train fast enough, the airlines are feeling the pinch.

Last week Air Deccan, the pioneer no-frills carrier, announced a £39 million loss for the 15-month period ending June 30, wiping out half its net worth. Jet Airways, the market leader, reported a pre-tax loss of £6.8 million for the quarter ended June 30, compared with an £18 million profit the previous year.

Naresh Goyal, Jet’s founder chairman, said that he expected airlines collectively to lose £250 million this year — or nearly £700,000 a day. The picture would suggest that it is only a matter of time before one goes bust.