India to foreign airlines: go away, we don’t need your international flights
In terms of population, India is equal to the population of China. However, this is not so important in economic or geopolitical terms. He did not experience the rise of China. India’s economy is about one-fifth the size. And even at purchasing power parity, the average Indian is about 60% poorer than the average Chinese.
They don’t think they need overseas flights to improve trade and reduce costs. They would rather protect their homegrown oligarchs.
In the early 1990s, facing a debt crisis and a sluggish economy, India partly liberalized its economy, abandoning many business licensing regimes and protectionism. They almost doubled economic growth from a low base and prevented the country from going bankrupt.
However, the lesson of the early 90s seems to have been forgotten under Prime Minister Modi, as evidenced by India’s decision not to allow foreign airlines to add more flights.
On Tuesday, India dampened hopes of foreign airlines to increase access to its airports as its aviation minister urged local carriers to fly long distances and help establish new hubs in a bid to regain control of travel to India from foreign rivals.
…India was not going to increase its quotas for air links with the Gulf countries and instead wanted Indian carriers to offer non-stop long-haul flights on larger aircraft. He said the Air India widebody order and IndiGo’s double passes to some destinations were signs that the “transition” had begun.
Perhaps ironically named Gateway of India, Mumbai
According to India’s civil aviation minister, he has decided that the country should have a “hub in India” and not just on its eastern and western borders, going so far as to refer to airline operations as “my” hubs rather than other countries’ hubs. airlines, suggesting the role the Indian state expects to play in aviation despite the privatization of Air India. It also seems odd considering that Delhi is not on one of the country’s borders.
Air India has placed one of the largest aircraft orders in history, purchasing aircraft over several years, amounting to several points of India’s GDP in one year. And they seek to protect India’s largest conglomerate, the Tata Group.
- More flights, especially from Emirates as well as other Gulf carriers, will provide more choice for Indian consumers, increase competition and lower fares.
- More market places will mean more travel to and from India, which is good for trade and tourism. This will also support more cargo (trade).
- It will be easier for the poor citizens of India to travel. This would make it easier to get jobs abroad and send remittances home.
In every conceivable way, more flights from more airlines benefit the Indian economy and its people in general. Owners of domestic Indian airlines do not benefit, nor do politicians who depend on their support and favor.