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Sunday, January 2, 2011

Ministry moots model to make India a hub for air traffic

To strengthen the dwindling aviation sector and streamline operational costs, the civil aviation ministry has initiated deliberations on a hub-and-spoke model for the country's aviation industry.

The ministry has called a meeting of airlines, private airport operators and the Airports Authority of India (AAI) on Wednesday to examine the feasibility of a hub-and-spoke model. "We are looking at a hub-and-spoke model for two to three years from now, by which time the economy would have come out of the current slowdown. It is a forward looking step, and we are consulting airlines and the airport operators. It will lead to route rationalisation and other such benefits," a ministry official told The Indian Express.

The model brings efficiency in the transportation sector by greatly simplifying a network of routes. The model is used by major airlines including American, United, US Airways, Delta, Continental, and Northwest. As of now, the government is evaluating if the Greenfield airports at Hyderabad and Bangalore, and the Delhi and Mumbai airports - which are currently undergoing renovation - can support such a model . Along with the option of domestic hubs, the ministry is also keen to explore if India can be promoted as a regional hub, connecting Western nations with Eastern and far-Eastern nations.

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