Tuesday, July 22, 2014

Why Bangalore may struggle to become an aviation hub

Mumbai: On July 3, AirAsia's CEO Tony Fernandes said he wants to make Bengaluru an international aviation hub like Dubai. The comment, unlikely backed by a firm operational plan, nevertheless shows AirAsia's ambitious plans for India.
India has so far failed to utilise its potential to become a hub due to policy paralysis and high costs. But Fernandes is hopeful that will change.
The Malaysian carriers's local unit has already shifted a large part of its operations and staff to Bengaluru from Chennai and later has ambitions of flying from there to nearby foreign locations.
Bangalore has already given enough incentive to AirAsia to make the move from Chennai. Last month, it got approval from the Airport Economic Regulatory Authority to more than halve airport tariffs for what it calls a "home carrier". The discounts are also applicable to the international operations of the carrier. The move is seen as directly helping AirAsia although the airport hasn't specified it.So does Bangalore have what it takes to be a hub? It's got the basics right:
It is one of the fastest developing in India, being the base of most IT companies operating in the country as well as the choice of many other global giants making their way into it. A recent ASSOCHAM report said one global company moves to Karnataka every week.
21/07/14 Anirban Chowdhury/Economic Times
To Read the News in full at Source, Click the Headline