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    South Asia
     May 19, 2005
India's common man flies
by Raja M

MUMBAI - The early-morning Air Deccan flight DN 613 from Mumbai to Chennai could have been a glimpse fifteen years into the future, with a mere six flights scheduled in only two hours, from 5 to 7 AM, at a nearly empty Indian metropolitan airport. From what Captain G R Gopinath, managing director of Air Deccan, told Asia Times Online later in the day, India's flight schedule per hour could run into hundreds in the near future, carrying millions of domestic passengers. Projecting an astounding target of a billion seats a year within the next two decades, Gopinath seriously talks of 50,000 daily flights, a dizzying jump from the current 600 flights that India's domestic airlines manage a day.

Low-cost flying couldn't get lower, and the civil aviation industry's ambitions higher. In early May, Air Deccan announced that it would sell air tickets at 1 rupee per ticket (2 US cents) on its metro routes, with the mandatory $5 airport tax. However, only four seats would be offered at this incredible price on every Air Deccan Airbus 320 flight on a first-come, first-served basis, with the rest divided into different budget rates.

"In India, maids carry mobile phones these days, [something that was] unthinkable a few years ago," Gopinath said. He now aims to empower her to fly. Demolishing the outdated snob value attached to flying, Air Deccan has thus not only added a spring to the steps of budget airlines in India, it is also engineering a social revolution where flying will be as routine as taking a train. English-language daily The Hindu estimates the Indian domestic aviation market to be 19 million passengers annually, and expected to reach 45-50 million by 2010. Five million passengers will be added yearly for the next five years, numbers whose implications obviously have not yet penetrated deep enough into aviation and industrial circles.

Thirty low-cost airlines operate across Asia. India expects to see about two dozen cost-effective air services, including Spicejet, Kingfisher, Air India Express, Yamuna Airways, Magic Air, Paramount Airways, Air One, Indus Air and Go Air. India's common man holds the key to this phenomenal growth. As consumer goods majors realized early in India, low prices and vast volumes are the key to success in the middle-class-driven Indian market.

So the Bangalore-based Air Deccan struck a deal earlier this month with R K Laxman, India's most famous cartoonist, to use his legendary "Common Man" character as Air Deccan's mascot. Laxman's "Common Man" is a silent middle-aged man wearing a tucked-up dhoti, an ancient checked coat and a befuddled expression, observing India's colorful chaos for five decades. He has been appearing in Laxman's "You Said It" daily cartoon since early 1950s. Laxman told Air Deccan that if his "Common Man" mascot is indeed used, then tickets must sell at 1 rupee, possibly the cheapest air ticket anywhere in the world. Ten years ago, Laxman told this correspondent in an interview that once when he put his "Common Man" inside an aircraft, readers howled in protest: "How could the 'Common Man' afford to fly?" Laxman had to explain to indignant readers that the "Common Man" had won an air ticket in a contest. A decade later, not only can the "Common Man" afford to buy an air ticket, he also gets to be the official mascot of a fast-growing airline.

India and China have agreed to double the number of flights between the two countries, to 28 flights a day this winter and 42 by next summer. These two Asian nations, which together have over 2.4 billion people, are now the fastest-growing aviation markets worldwide. Air India's recent controversial $7 billion deal with Boeing only indicates the extent to which stakes have shot up in this regional market. With the government and the private sector investing $20 billion over the next five years, passenger traffic is set to grow 20% annually, Indian aviation minister and self-made millionaire Praful Patel told the media recently.

India's present average annual air travel is 0.1 trips per person, a fraction of the global average of 2. Only last year, the Sydney-based consultancy Center for Asia Pacific Aviation (CAPA) found that the Chinese took only 0.13 flights per capita in 2003, lagging behind Malaysia (0.60), Thailand (0.25), the Philippines (0.19) and Indonesia (0.15). Now, in a market outlook for China, Boeing forecasts a "requirement" in China for nearly 2,400 new jet airplanes worth $197 billion over the next 20 years. "By 2022," Boeing expects, "Chinese carriers will be flying more than 2,850 passenger and cargo airplanes, making China's fleet the largest outside of the United States."

In the Indian domestic sector, Air Deccan expects to earn $230.8 million in the current fiscal year. Gopinath told ATol that if most of India's 250 million middle class can be made to fly four times a year, India would reach its one billion seats figure. He enjoys recounting this story: "Recently, a young passenger thanked me and called me the Narayanamoorthy [the founder of software giant Infosys] of Indian aviation. I asked him where he worked. He said, 'Infosys'."

All that is fine. But the big question is how India's airport infrastructure, which currently lags far behind the frenetic growth of the country's mushrooming airlines, will cope. Key airports and air traffic control staff in metropolitan areas like New Delhi and Mumbai are already choked beyond safe capacity, but airport unions adamantly oppose privatization. The pressure for change, though, is relentlessly building up. In the two years after it took off, with a disaster of an inaugural flight that saw the plane's engines spewing smoke and an emergency evacuation, Air Deccan has sold over a million seats. An average of 30% of the passengers on its flights are first-time fliers. This correspondent saw an unusually large proportion of children and elderly people on flight DN 613, suggesting that entire middle class families can now afford to fly instead of taking the train.

This correspondent also found the budget airline flying experience more comfortable and pleasant than expected. Some have complained that the airline charges for refreshments, but Air Deccan's young flight crew, selling coffee and tea (25 cents), vegetable rolls (75 cents) and samosas (30 cents apiece), looked more presentable and cheerful than the government-owned Indian Airlines or Air India crew serving "free" airline meals and welcome drinks. Also, domestic routes in India never take more than 150 minutes. So, as an Air Deccan in-flight magazine asks: "Who wants to eat while flying anyway?"

(Copyright 2005 Asia Times Online Ltd. All rights reserved. Please contact us for information on sales, syndication and republishing.)


Budget airlines move to a higher plane (Jan 8, '05)

The year India learned to fly (Dec 25, '04)

India's open and empty skies (Sep 18, '04)

No-frills flying takes off in Asia (May 22, '04)

India's budget airlines take wing (Sep 28, '04)

India's airlines in a tailspin (Oct 10, '03)

Plain flying arrives in India (Oct 1, '03)

 
 

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