India Holidays News

India's millionaires soar

The number of millionaires in India increased by 22.6% in 2007 the biggest increase of any other country. This new wealth and the rapidly expanding middle class as the Indian economy continues to grow while much of the rest of the world goes into recession has provided important support for the country's domestic airline industry.

India's airlines are experiencing the same tough trading conditions as their internation competitors but new routes are still being opened up to meet domestic demand.

Among scheduled airlines looking at expansion is Paramount Airways, the business-class airline based in Tamil Nadu which has plans for new routes to western India including new services between Chennai and Ahmedabad and later to Mumbai, Pune and Goa.

“With the launch of Chennai and Ahmedabad flights, passengers from Coimbatore, Madurai and Cochin will now be able to travel to and from Ahmedabad and Mumbai through Chennai,” the airline said recently.

Our foray into the western region opens up a new route for the airline taking advantage of the existing unmet demand in this sector,” said Mr. M. Thiagarajan, Managing Director of Paramount Airways.

Air charter companies are also poised to take advantage of the huge growth potential in the country.

The number of non-scheduled operator permits granted by the Director General of Civil Aviation has increased threefold to over 30 this year which clears the way for airline companies to launch non-scheduled domestic operations.

The air charter market in India is very fragmented with about 30 air charter operators but the market is expected to tighten up in the future.

“Due to the huge amount of wealth being created in the country and the rising number of high net-worth individuals, a number of entrepreneurs see a huge opportunity in private air travel and are starting charter companies,” said one analyst.
October 2008