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Two more flights lost to low volumes
Air India Express is withdrawing its flights from Calcutta to Singapore and Dhaka after Diwali in another show of no-confidence on the growth potential of international air traffic to and from the city.
By Sanjay Mandal
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Oct. 13: Air India Express is withdrawing its flights from Calcutta to Singapore and Dhaka after Diwali in another show of no-confidence on the growth potential of international air traffic to and from the city.
In a circular to travel agents today, the budget airline said it would stop operating flights in both sectors on October 29.
Air India Express currently has a daily flight to Dhaka and flies four days a week to Singapore, airline officials said. Both flights had been launched only 11 months ago.
In the Calcutta-Singapore sector, Air India Express competes with Singapore Airlines and its subsidiary SilkAir. The Calcutta-Dhaka sector is a lot more crowded, with eight airlines currently running daily flights.
Air India Express officials were unavailable to comment on the reason for the pullout. The unofficial buzz is that the decision to withdraw the Dhaka and Singapore flights is part of a "route rationalisation" exercise.
Since Air India flies daily between Calcutta and Dhaka, the viability of a competing low-cost flight run by a subsidiary was reviewed and found to be poor, sources in the airline said.
Aviation experts not connected with Air India or its subsidiary said two factors were responsible for the decision - not enough international travellers through the year in short-haul sectors and inadequate marketing.
"In a competitive market, an airline has to be aggressive in marketing its flight," said a senior official of an international airline operating out of Calcutta. "Air India Express seems to be on auto pilot. After the launch of the flight (in November 2016), they hardly did any product promotion," he said.
There are about 900 seats for the taking every day in the Dhaka sector. Average daily demand is barely about 700, sources said.
An official of a private airline said airlines were finding it difficult to fill seats except during the holiday season.
"In the Dhaka sector, four to five flights daily are enough to meet the demand because there are also other modes of transport like train and bus. Trade traffic, which used to fill aircraft, has declined over the past few months," said Anil Punjabi, chairman (east) of the Travel Agents' Federation of India.
Jet Airways, SpiceJet and Biman Bangladesh are the big fish in this sector.
While the growth of international air traffic from the city has been stunted, footfall in the domestic sector increased by almost 26 per cent in 2016-17 over the previous year - up from 12.8 million to 15.8 million. The international section handled 2.3 million passengers in 2016-17 against 2.15 million the previous year.
Calcutta's international air traffic is seasonal and focused on Thailand, Malaysia, Singapore, Hong Kong, China, UAE, Qatar and Bangladesh. Tourists and students make up the majority of international travellers.
"There is a large chunk of onward passengers from Singapore to the Far East and the US. But these passengers book mostly with Singapore Airlines, which has onward connectivity," said a tour operator.
Flying rights to London from Calcutta have been unused since British Airways withdrew and Air India discontinued its direct flight.
Aviation experts said Calcutta's growth in terms of business had been stagnant for want of corporate travel, the lifeblood of an airline.
Corporate travel ensures year-long traffic, but industry-starved Bengal has little of it. No European carrier operates out of the city because of the same reason.
The Gulf carriers are doing well only because they are feeding international passengers to their respective hubs, sources said.
Air India Express is withdrawing its flights from Calcutta to Singapore and Dhaka after Diwali in another show of no-confidence on the growth potential of international air traffic to and from the city.
By Sanjay Mandal
- Published 14.10.17
Share to Facebook
Share to TwitterShare to LinkedInShare to WhatsAppShare to Email
Oct. 13: Air India Express is withdrawing its flights from Calcutta to Singapore and Dhaka after Diwali in another show of no-confidence on the growth potential of international air traffic to and from the city.
In a circular to travel agents today, the budget airline said it would stop operating flights in both sectors on October 29.
Air India Express currently has a daily flight to Dhaka and flies four days a week to Singapore, airline officials said. Both flights had been launched only 11 months ago.
In the Calcutta-Singapore sector, Air India Express competes with Singapore Airlines and its subsidiary SilkAir. The Calcutta-Dhaka sector is a lot more crowded, with eight airlines currently running daily flights.
Air India Express officials were unavailable to comment on the reason for the pullout. The unofficial buzz is that the decision to withdraw the Dhaka and Singapore flights is part of a "route rationalisation" exercise.
Since Air India flies daily between Calcutta and Dhaka, the viability of a competing low-cost flight run by a subsidiary was reviewed and found to be poor, sources in the airline said.
Aviation experts not connected with Air India or its subsidiary said two factors were responsible for the decision - not enough international travellers through the year in short-haul sectors and inadequate marketing.
"In a competitive market, an airline has to be aggressive in marketing its flight," said a senior official of an international airline operating out of Calcutta. "Air India Express seems to be on auto pilot. After the launch of the flight (in November 2016), they hardly did any product promotion," he said.
There are about 900 seats for the taking every day in the Dhaka sector. Average daily demand is barely about 700, sources said.
An official of a private airline said airlines were finding it difficult to fill seats except during the holiday season.
"In the Dhaka sector, four to five flights daily are enough to meet the demand because there are also other modes of transport like train and bus. Trade traffic, which used to fill aircraft, has declined over the past few months," said Anil Punjabi, chairman (east) of the Travel Agents' Federation of India.
Jet Airways, SpiceJet and Biman Bangladesh are the big fish in this sector.
While the growth of international air traffic from the city has been stunted, footfall in the domestic sector increased by almost 26 per cent in 2016-17 over the previous year - up from 12.8 million to 15.8 million. The international section handled 2.3 million passengers in 2016-17 against 2.15 million the previous year.
Calcutta's international air traffic is seasonal and focused on Thailand, Malaysia, Singapore, Hong Kong, China, UAE, Qatar and Bangladesh. Tourists and students make up the majority of international travellers.
"There is a large chunk of onward passengers from Singapore to the Far East and the US. But these passengers book mostly with Singapore Airlines, which has onward connectivity," said a tour operator.
Flying rights to London from Calcutta have been unused since British Airways withdrew and Air India discontinued its direct flight.
Aviation experts said Calcutta's growth in terms of business had been stagnant for want of corporate travel, the lifeblood of an airline.
Corporate travel ensures year-long traffic, but industry-starved Bengal has little of it. No European carrier operates out of the city because of the same reason.
The Gulf carriers are doing well only because they are feeding international passengers to their respective hubs, sources said.