{"id":226983,"date":"2023-02-17T21:11:38","date_gmt":"2023-02-17T15:41:38","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=226983"},"modified":"2023-02-20T12:38:21","modified_gmt":"2023-02-20T07:08:21","slug":"fasten-your-seatbelt-india-air-indias-huge-order-has-multiple-implications-for-the-airline-for-civil-aviation-for-policy-and-for-manufacturing-heres-a-deep-dive","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/fasten-your-seatbelt-india-air-indias-huge-order-has-multiple-implications-for-the-airline-for-civil-aviation-for-policy-and-for-manufacturing-heres-a-deep-dive\/","title":{"rendered":"Fasten Your Seatbelt, India – Air India\u2019s huge order has multiple implications, for the airline, for civil aviation, for policy and for manufacturing. Here\u2019s a deep dive"},"content":{"rendered":"\n

Source<\/strong>: The post is based on the article\u00a0\u201cFasten Your Seatbelt, India – Air India\u2019s huge order has multiple implications, for the airline, for civil aviation, for policy and for manufacturing. Here\u2019s a deep dive\u201d <\/strong>published in The Times of India <\/b>on\u00a017th February 2023<\/b>.<\/p>\n

Syllabus<\/strong>: GS 3 \u2013 Infrastructure: Energy, Ports, Roads, Airports, Railways etc.<\/p>\n

Relevance<\/strong>: About the Indian aviation market.<\/p>\n

News<\/strong>: Recently, the Tata Group, which acquired Air India, has placed an order for 470 new aircraft. This is the largest ever deal in aviation in India.<\/p>\n

About the new deal for Air India<\/strong><\/h2>\n\n\n\n
Read here: Modi, Macron, Biden announce: 470 Airbus, Boeing planes for Air India<\/a><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Where does the deal offer Air India?<\/strong><\/h2>\n

Domestic significance<\/strong>: Locally, Air India faces a formidable competitor from IndiGo which flies a fleet of 308 aircraft and has more than 55% of the market locked up.<\/p>\n

There\u2019s also a fast-growing competitor in Akasa, which has captured more than 2% of the market in five months since its launch.<\/p>\n

Air India after combining four entities (the others are Air India Express, AIX Connect and Vistara) has a fleet of 220 aircraft with 26% of the market. Hence, the deal will enable Air India to engage in a complete fleet renewal coupled with significant expansion.<\/p>\n

International significance<\/strong>: The deal will a)<\/strong> Match features of international airlines like Emirates, Qatar Airways, Singapore Airlines, British Airways and Lufthansa\u00a0and b)<\/strong> Enable Air India to enter, capture traffic flows and build foundations in markets such as Vietnam, Thailand, Indonesia, Malaysia and SAARC nations.<\/p>\n

What does the deal offer for the Indian aviation market?<\/strong><\/h2>\n

Over time, the Tata Group aims to bring commercial aircraft manufacturing into the country.\u00a0 If it was for Airbus, then the set-up of an assembly line will be their second assembly line in Asia after China. This would pave the way for boosting manufacturing and technology transfer agreements with Indian firms.<\/p>\n

Note<\/strong>: Boeing already has\u00a0an existing joint venture with Boeing on the defence side.<\/em><\/p>\n

The deal will also help India to a) <\/strong>Forecast Indian aviation sector growth at a global level, b)<\/strong> Improve India\u2019s economic growth prospects and geopolitical dynamics, and c)<\/strong> Help in leveraging geopolitical dynamics to provide a competitive edge for India’s international relations.<\/p>\n

What should be done to improve the Indian aviation market?<\/strong><\/h2>\n

The Indian aviation industry has two major challenges. a)<\/strong> India has a complex fleet infrastructure which challenges the seamless induction and deployment of mammoth aircraft orders,\u00a0<\/span>b)<\/strong> The deal does not provide adequate returns on capital unless there is a smooth deployment of aircraft.<\/p>\n

To overcome that, India needs policy changes to develop airports as hubs, ensure proper air-traffic management, presence of adequate maintenance facilities and trained manpower.\u00a0<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article\u00a0\u201cFasten Your Seatbelt, India – Air India\u2019s huge order has multiple implications, for the airline, for civil aviation, for policy and for manufacturing. Here\u2019s a deep dive\u201d published in The Times of India on\u00a017th February 2023. Syllabus: GS 3 \u2013 Infrastructure: Energy, Ports, Roads, Airports, Railways etc. Relevance:… Continue reading Fasten Your Seatbelt, India – Air India\u2019s huge order has multiple implications, for the airline, for civil aviation, for policy and for manufacturing. Here\u2019s a deep dive<\/span><\/a><\/p>\n","protected":false},"author":10311,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10496],"class_list":["post-226983","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-times-of-india","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1701285275},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/226983","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10311"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=226983"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/226983\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=226983"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=226983"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=226983"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}