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Topic: Etihad To Add 4 New India Cities
Username: Behramjee
Posted 2008-02-07 12:40:05 and read 2613 times.

Etihad Airways have won the right to add 4 new cities in India. They are MAA, CCU, CCJ and JAI.

A majority of the Gulf's labor force supplied from India hails from CCJ and JAI and with no other Gulf carrier flying to CCJ, EY has v good chances there. From JAI, EY's main competitor would be Oman Air.

Source :

http://www.arabianbusiness.com/51062...our-indian-cities-to-service?ln=en

[Edited 2008-02-07 12:40:30]

Topic: RE: Etihad To Add 4 New India Cities
Username: Behramjee
Posted 2008-02-07 18:04:00 and read 2436 times.

Its really surprising to see that the Indian Govt gave permission to EY to launch CCJ-Calicut which for decades has always been fiercely protected for Air India as a majority of the Keralite labor force working in the Middle East hails from CCJ. Hence, for the last 2 decades Air India has always successfully managed to lobby the Indian Govt to keep this monopoly and not allow Gulf carriers to tap this market segment.

Another interesting move has been to allow EY access to JAI-Jaipur where the bulk of the North Indian labor force in the Middle East hails from. From JAI, EY will face competition from WY-Oman Air only who fly nonstop from their MCT base using a B 737-800. JAI will also be a popular destination with European and USA tour operators who promote "The Golden Triangle (Delhi-Agra-Jaipur)" tour package to their clients.

However, EY must not make the same mistake that it has done currently with its TRV & COK flights i.e. by sending A 320s to JAI & CCJ. EY must deploy 2 class configured A 332s to JAI & CCJ to make money as the demand is there on a year round basis especially by it not facing competition from any European or prominent Middle East carrier on these routes. It must exploit this position to the maximum as the cargo demand too year round to both these cities is very high. The A 332 can carry 10-12 tons of cargo easily in its belly on these medium haul flights which means a lucurative source of additional revenue for EY.

Lastly, with regards to CCU & MAA, the same thing applies. EK, SV and the European carriers use luxurious wide bodied aircraft to fly to both these key Indian port cities. For EY to be competitive especially against EK who send their B 777s and A 332s to both MAA & CCU, it must also respond accordingly by using a 2 class A 332 for both cities.


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