The double-decker Airbus A380 can seat as many as 800 passengers in an all-economy configuration. Photo: Bloomberg
Hyderabad/New Delhi: India has cleared an air services agreement with Singapore that will allow Singapore Airlines Ltd to fly its super jumbo Airbus A380 aircraft to India.
The double-decker A380 can seat as many as 800 passengers in an all-economy configuration.
Analysts say big international carriers will use this opportunity to tap the high-volume and price-sensitive Indian market. This will, however, affect national flag carrier and set back Delhi airport's dream of becoming an aviation hub.
'There were minor changes required to the air services agreement we had with Singapore. Those changes have been made,' said a government official who declined to be named.
A second official, who also declined to be named, confirmed the signing of the updated agreement between Singapore and Indian delegates at the Hyderabad air show, India Aviation, last week.
'SIA is keen to operate A380 services to India, and the inclusion of A380 into the India-Singapore bilateral agreement will allow us to do so. More details will be shared later,' said , general manager, India, Singapore Airlines.
'The operation of A380 will mean larger capacity, enabling us to carry a similar number of passengers while mounting fewer flights on what could be popular routes,' he added.
India in April 2013 increased the seat capacity for Singaporean airlines flying into the country by 10% to nearly 29,000 a week, but a ban on the A380 planes remained.
Singapore Airlines has almost exhausted its existing seats allotment and the first government official quoted above said the airline may look to replace some of its existing services with A380 flights.
In the new service agreement, Singapore Airlines has been permitted to fly the A380 to any Indian airport equipped to handle the plane.
At present, only Delhi, Mumbai, Hyderabad and Bangalore airports have the infrastructure to handle the jumbo A380s, the civil aviation ministry said in a statement on 27 January, announcing the lifting of the ban on these planes. The planes were banned because it would have hurt the commercial interests of Indian airlines.
The clause in the new agreement could be interpreted to mean that Chennai airport, which is nearly ready to handle A380 flights, can also be used for the service, besides other big airports like Cochin and Kolkata, said an Airports Authority of India (AAI) official, who declined to be named.
'The operation of A380s will help airports generate more revenue, give more comfortable and luxurious travel to passengers, liberalize the civil aviation milieu in India and boost the image of Indian civil aviation in the international market,' the ministry had said in its statement in January.
, Singapore Airlines and are interested in flying A380s to India, the ministry added.
No Indian carrier has an A380.
Emirates, which flew in its A380 to the Hyderabad air show, said it 'will be reviewing our existing operations, and look forward to serving Indian travellers with our flagship aircraft in the near future'.
'India is a volume market with high price elasticity. You want to be able to offer the lowest possible cost per seat product. (And the) A380 has the lowest possible cost per seat,' said an executive with a foreign airline, declining to be identified.
Airlines flying regular long-haul aircraft will be affected on routes where A380s are introduced, but this will be short-lived, said the executive, who has studied the impact of adding A380 planes in a particular sector or route.
'The yields or airfare on that sector did a nosedive to account for the extra seats A380 has but one-two years later, the market has absorbed the capacity and things are back to normal,' this executive said.
State-run Air India (AI) could be the most affected by the government's decision.
'AI's long haul flights (US/Australia) should remain relatively unaffected because those passengers are willing to pay a bit of a premium to fly direct in the interest of time. Most of the impact will be on Europe. As I said, price is key in the Indian market. If it is cheaper to fly via Middle East (which it certainly will be with an A380), passengers will choose that option,' the executive said.
Delhi airport's ambition to become a hub may be undermined if Singapore Airlines and other international carriers succeed in attracting Indian passengers with the A380 and fly them to other destinations via their own aviation hubs, like Singapore and Dubai. In the short term, airport operators in India can expect to charge airlines more for A380 landings because it is a heavier aircraft, but it would eventually reduce the scope for India to develop a hub airport of its own, said the executive said.
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