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Airlines Companies: Clash Among Titans

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Airlines Companies: Clash Among Titans

The phenomenal growth in the international air traffic from the Indian subcontinent to the  US has given rise to a different kind of dogfight . Three biggest  U.S. based  airlines, rated amongst  the oldest players in the aviation industry, have jointly picked up cudgels against the emerging players  of the  Persian Gulf namely  Etihad airways, Emirates and Qatar airways alleging that the said carriers  are depending on out of line government sponsorships to command the lions share in the aviation market on the long haul sectors especially from India to the United states


The Big Three – American Airlines, United Airlines and Delta Air – charged in a broadly coursed note, "Over the previous decade, the administration of Qatar, Abu Dhabi and Dubai have conceded over $40 billion in sponsorships and other out of line advantages to their state-owned airlines to empower their economies by advancing the stream of worldwide air traffic movement through their Gulf center points."

At the heart of the fight are a large number of travelers from India on U.S.-bound flights  operated  by the Gulf carriers. India's outbound movement is  growing  at double digits  and is estimated  to keep up this pace in the next  decade as well . The U.S. carrier trio charged that Indian subcontinent bookings made by  Gulf carriers  dramatically went up  from 12%  to 39.8% in the last four  years while U.S. based  airlines lost a considerable share of the market
Interestingly, while the U.S. and the  Gulf carriers fight over its share of air traffic , India , the bone of contention  in this dogfight , has not taken any initiative to take up this opportunity. It has demonstrated no interest  to position  its state-owned carrier  Air India which is in the doldrums and lacks any long term business plan.
Irrespective of Delhi and Mumbai airports being state of the art as per the international standards , the Indian aviation does not utilize these hubs and  the three Gulf carriers  operate  more international  flights out of India than all Indian carriers put together

Truth be told, India is the biggest   emerging  market for the  for Gulf carriers. Their state of the art aircraft and on board facilities are also matched with an attractive airfare thereby luring the Indian customers with great aplomb.

Moreover , if you fly Etihad Airlines to US, there’s an additional advantage. US immigration process becomes very smooth   as  US has a preclearance facility in Abudhabi  making it even more convenient for those seeking to fly beyond  the point of immigration in the US. The guest lands into US having completed all  immigration formalities beforehand and is spared from the Long queues at the point of entry

Low cost of oil and government  subsidy  has been a game changer  for the Gulf carriers and it is not  surprising that the US carriers are crying foul  much to the amusement of the Indian traveler who is looking  forward to getting the best of this dogfight



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