Kathmandu, April 7:

The aviation industry is undergoing some fundamental changes. The changes are being felt most keenly in the Asian region, where most countries’ are enjoying the boons of leapfrogging.

Even the partial opening up of the skies, has meant revolutionary changes in countries like India. Peter Luethi, chief operating officer of Jet Airways (India) Ltd, who was in Kathmandu recently, says that from ‘bi-lateral single-designation’ understanding between a handful of operators, the aviation sector in this region has progressed to ‘multi-lateral multi-designation’ agreements.

What this means is that a number of airlines from various countries are sharing seats, capacity and frequency on most routes. This is in contrast to earlier times when one airlines used to have seat sharing agreement only for one destination with another airlines.

Such agreements are now being forged between operators from countries like Nepal, India, Germany, UK, US, France, Thailand, Singapore and Malaysia.

This is improving efficiency in air operation, helping lower fares despite rising fuel costs and offering flexible options to passengers, feels Luethi. And all this is a natural corollary to governments’ decision to depart from ‘restrictive national carrier-based policy’ towards a more open sky policy.

Speaking about the changes in India in particular, Luethi says, “The decision of the government to offer a level playing field to all the operators and allowing 49 per cent equity to foreign investors, have helped impart a great momentum to the Indian aviation industry.”

Garry Kinshott, the chief commercial officer of Jet Airways (India) who accompanied Luethi, speaking on the same subject, mentions about the decision of the Indian government to allow a consortium of private players to construct some major airports.

Commenting on the state of aviation sector in the other SAARC countries, Luethi says that there are ‘large differences in standards’, even in terms of safety and security. This is where, he feels, active involvement by governments’ in the aviation sector continues to be of importance. It is only governments’ that can ensure that all players, including budget airlines, adhere to standards set by International Civil Aviation Organisation (ICAO).

On the future of budget airlines in the region, Luethi says, “The budget airlines hardly enjoy any cost-advantages here. They have to pay the same amount for landing, navigation, airport, fuel and taxes. There is no alternative airports for them as well.”Despite such constraints they have helped move a section of people from traveling in trains to planes and introduced greater competition. They have also forced players like Jet Airways to revisit their fare structure.

Offering fares at cheaper rates is becoming an increasing difficult challenge with the prices of aviation turbine fuel (ATF) spiraling up globally. All the more so in India, where largely fluctuating taxes on ATF imposed by state governments make fuelling in a place like Colombo, for example, about 40 to 60 per cent cheaper, reveals Luethi.

Despite such wrinkles in the still-nascent aviation sector, sky may not be the limit yet. With rising incomes and an ever-growing middle class willing to shell out cash not only for work but for leisure too, airlines’ in this region particularly can look forward to exciting times. To keep the momentum going, however, better infrastructure, improved coordination between airlines and a continuing focus on improvement in service to customers will be required, opines Luethi.

Check fares from Jet Airways

Kathmandu: Competition has been good for all players, including Jet Airways, feels Peter Luethi, COO of Jet Airways (India) Ltd. According to him Jet Airlines alone has about 10,000 seats open a day, flying at a 71 to 75 per cent seat load. The airlines has started offering about 500,000 seats over the next four to five months at 45 to 50 per cent discount rates. The scheme, called ‘check fares’, is available on the internet. Tickets under this scheme can be bought by e-ticketing globally, a facility about to be introduced here in Nepal soon. —HNS