Tuesday, June 25, 2013

Gulf carriers look east for new alliances

Everyone knew that when the Indian aviation sector opened up, there would be a rush of airlines willing to invest in the country. Despite all the red tape and bureaucracy, India represents a potential passenger market of 1.2 billion people. Many of them increasingly spending on travelling due to the higher amounts of disposable incomes. And the Gulf carriers are no different.
Indian carriers are also increasingly vying for investments from foreign entitites as they seek to break out of a rut they have been stuck in for a while. That of not making large profits and being bogged down by limited bilateral relations that restrict the number of flights they can operate outside the country. And if Jet Airways can sell a stake, one cannot disregard the smaller fish in the sea.
How all this will play out eventually is difficult to determine. The Indian market has increasingly been opening up for foreign investors and despite the demonstrations and protests from the small-scale industries, the government is letting in big retailers set up shop in the country. Some argue that the Indian market is big enough for everyone to make a profit and that traditional models of shopping will ensure that the smaller retailers are protected in the long run.
25/06/13  Ruchi Shroff/Arabain Business.com