Last week Paramount Airways took its wings from Coimbatore.
What is striking is its focus on secondary cities, move away from low cost, and offer “business-class only” seats at affordable fares.
It is likely to be a big hit according to me.
The quality of life in many of the secondary cities like Mysore, Coimbatore, Indore, Ranchi or Pune is much better than metros; but senior executives and scions of business families cling to metros for better air connectivity. With telecom improving dramatically, education institutions moving to hinterland, and availability of good quality hospitals in secondary cities, it is only time that the growth will move to secondary cities. With people with larger disposable income moving to secondary cities, entertainment and retail will move too; that would start the real growth in non-metros in India.
Hopefully, the municipal functions will improve; so are law and order, infrastructure like power; if that indeed happens India will be a better place to live.
I am also happy that the airlines chose Embraer Aircraft from Brazil; aircraft that suit travel between “secondary cities to metros” (too short for Airbus and Boeing, too long for ATR), far more comfortable and economic. If only the Government had not stifled the public sector with their archaic processes and the never-ending CVC, CAG and Parliamentary Committees (that are used by successive governments to settle the score among them, with the public servants being used as ping pong balls), HAL & NAL would have built such aircraft in 90’s that would have added another growth engine (in addition to IT and BT) to the Indian economy in this decade. Embraer also shows that niche companies from “not so advanced” countries can compete with the gorillas (Boeing & Airbus) too!
The knowledge industry (IT, Biotech, R & D, Design and Pharma) should be the first to grow into such secondary towns.
What this country needs is such innovations in every walk of life – Arvind in eye care, Devi Shetty in Cardiac suregery, Mashelkar in CSIR… That alone will do justice to India’s Talent
October 14, 2005 at 6:52 am
Great read Professor…
I had never realised that India is lagging behind in Aircraft Manufacturing Industry. When Brazil can do it, so can we. You have promptly put forward the problem faced by HAL & NAL. I would like to read your opinion about how profitable this industry will be for India.
Thanks again.
Best Regards,
Girish
October 17, 2005 at 3:49 pm
Hi
I subscribe to the views above..!!
But I don’t think that we have missed the opportunity. It’s just a start of exploring indian skies. So still HAL and NAL can pull there socks and creat history.
October 18, 2005 at 4:40 pm
Professor:
LCC’s(low cost carrriers) have the ability to push the mass exodus of people travelling by train to travel by air….paramounts vision is unique…by offering lower business class fares on non-metro/metro routes,
but it is a very niche segment….and there are only limited routes on which it would operate and it cannot easily operate metro routes as it will have obligations to operate to NE states/J&K/andamans.
The dependence of the airline on filling up low cost business class seats might not work in recession and should reduce its dependence on it….the airlines could turn around and fully utilise its planes between 10:30 pm and 6:00 a.m(instead of keeping them in the hangar.)…by flying coimbatore-mumbai-coimbatore…and still offer slashed down rates(night fares) than the one already offered….