Indian Airlines Eyes 15% Growth In International Market Share

Indian Airlines has targeted a growth rate of 15 per cent in its share of the international aviation market and a 60 per cent share of the domestic market over the next five years.

This has been set as one of the primary objectives in its operational strategy over the period.

G K Agrawal, director, planning, Indian Airlines, told Business Standard that an improvement in the market share of the national carrier will be possible only through a fleet expansion and upgradation.

The airline has projected a requirement of 72 aircraft by the year 2002 to enable it to retain and enhance its current market position.There are plans to raise its current fleet strength from 52 to 72 aircraft. This will involve the replacement of the 22 Boeing 737 aircraft, which have become outdated.

 

The airline also plans to acquire 50-seater aircraft and is currently looking at the possibility of adding six of these to its fleet. The other factor which is crucial in improving market position is maximum seat utilisation. According to reports, IA has nearly 10,000 seats unutilised every day.

Its seat utilisation till December 1996 was 70 per cent.

The airline is looking at the possibility of dry leasing three A300 and two A320 aircraft from Air India as a step towards fleet expansion.

Leasing is being regarded as a better short term solution over outright purchases. Dry leases, sources said, are also a faster means to aircraft acquisition than outright purchases.

An international strategy is yet to be worked out for achieving the targeted growth rate of 15 per cent per annum.

In the case of the domestic market, Indian Airlines's growth rate will depend on the condition of the industry which is projected to grow at the rate of 10 to 12 per cent, Agrawal said.

There will however be no changes in the current fleet mix of Boeing and Airbus carriers. 12 of the 22 Boeings which are to be replaced will be phased out of the fleet over the next five years, he added.