India Uncut

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Wednesday, July 06, 2005

Protect us, they cried

The Economic Times reports:
If you thought the ‘flight’ party has just begun for the Great Indian Middle Class with low fares of the no-frills type, here’s a wet blanket. Stung by the competition unleashed by low-cost players like Air Deccan and SpiceJet, bigwigs of the domestic aviation industry have unleashed a hushed campaign for introduction of stiff entry barriers which will prevent competition from intensifying.

While the civil aviation industry is yet to take a view on this, legacy carriers are pushing strongly for higher investment limits and fleet strength, which will deter entry of smaller players. Infrastructure constraints are also being highlighted to seek more regulations on entry of new players, highly-placed sources in the civil aviation ministry said.
In other words, the big players are asking the government to protect them from the smaller players, who are giving them a tough time with their low prices. They're running scared of competition that will, of course, benefit the consumers: you and me. Hopefully the government will tell them just where they can, um, get off.

(Link via MadMan's LinksMatic.)
amit varma, 11:37 PM| write to me | permalink | homepage

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