Enterprise
The burden of big
No superjumbo in the land of elephants? The Airbus A380, the world’s largest passenger plane, is not allowed to enter the country with the second-largest population in the world because regulations restrict flying aircraft bigger than Boeing’s 747. A Ministry of Civil Aviation official recently said foreign carriers such as Emirates and Lufthansa have been trying to convince the government to rethink. So, is any change likely? Rishikesha T. Krishnan, professor of corporate strategy at the Indian Institute of Management Bangalore, says: “There is increasing concern about the strength of foreign carriers in India. Right now there is more sensitivity about the plight of India’s airlines after the troubles of Kingfisher.” Also, private Indian carriers and Air India have lobbied to block any change, over fears that the entry of the superjumbo will give Emirates more muscle. However, the flexibility of multiple flights daily from Delhi—a luxury allowed by smaller aircraft—has been crucial to Emirates’ strategy of feeding the hub at Dubai and then flying passengers to the rest of the world. The A380 could, therefore, be more about making a statement than good business. But Lufthansa will welcome a change in rules as it runs a business focussed on carrying traffic in bulk from fewer destinations.
Also Read
-
Tata Technologies FY24 profit surges 9% at ₹679 cr; revenue grows 16%
-
WhatsApp India bans 2.2 crore accounts in Jan-March
-
Titan Q4 profit rises 5% to ₹771 crore
-
Adani Green Q4 profit drops 39% to ₹310 cr
-
Godrej Properties Q4 profit up 14%; revenue down 13% to ₹1,426 cr