They were allowed to advertise fares or even flight schedules freely and fly passenger for more than 700kms which was initially forbidden. (Weiner, 1995)
In 2006 the India government started with allowing private airlines to fly to Colombo for the first time under the open skies policy with Sri Lanka. (Marcelo, 2004)
Later in 2005 the air routes London were also opened for private airlines.
The relaxing of air restrictions by the government has also helped private airlines to function with fewer restrictions and allowed them to expand their fleet to meet up the increasing demands of the customers.
? Increase in standard of Living and tourism: The services sector, which accounts for over 50 per cent of the country's GDP today, has increased at very high rate. If the growth goes at a similar rate, this sector would alone be earning $60 billion in the next four years. The growth in the past years has helped in raising the living standard of living of the people in the country. Healthcare has been another services sector that is becoming a main area of strong point for India. People from all across the world have started travelling to the country for their treatment; this has been possible due to cost efficiency and the quality provided simultaneously. (Mittal, 2007)
The tourism industry was slow in the starting and needed boost but it has steadily increased in the past few years. Despite the 9/11 attack in 2001 and the Gulf war there has been 15.3% growth in tourist in India in2003. EIU (ViewsWire, 2004)
? Rise of low fare airlines: Till 2003 there were 3 major players in the markets, but competition in the domestic airline industry has increased with the entry of a new breed budget operator and enhanced market admission for foreign carriers, a new breed to airlines like Kingfisher Airlines, Air Deccan, SpiceJet etc also entered the market at the same time. ( View More »