Air India returns to Aussie skies

BY MAMTA SHARMA

Thirteen years after it discontinued its services to Australia in 1997, India’s official airline Air India has announced the “relaunch” of its daily direct flights between New Delhi to Melbourne on November 1 with B-777 aircraft.

While the airline deal is seen as a significant move to further strengthen trade and cultural ties between the two countries, this announcement has taken the community and travel trade professionals by surprise.

Under the deal, the airline will establish its regional headquarters in Melbourne, creating up to 78 jobs. There was a strong bidding war for Air India’s business between New South Wales and Victoria, however it is believed that the incentive packages offered by Victoria were extremely attractive and a visiting delegation led by Air India Chairman had no hesitation in accepting Victoria’s offer. It is believed that among other incentives, the Victorian government will contribute to the cost of an advertising campaign in India. Melbourne airport has no curfews unlike Sydney, and will allow maximum aircraft utilisation meaning it will not be stuck on the ground and will allow overnight flying. The Melbourne government also owns the airport, unlike Sydney airport which is in private hands and so was able to throw in landing right concessions and other subsidies, according to industry sources which helped Victoria to pick up this prestigious contract.

According to Carl Jones, Melbourne Tullamarine airport’s airline business manager, the number of people travelling between Melbourne and India grew by nearly 20% last year, well ahead of the overall Australian growth rate. “Air India, by choosing Melbourne as their base, has seized this market opportunity. The Indian community in Victoria represents around 57,000 people, helping fuel the growth [from India] of those visiting their friends and relatives in Victoria,” he said. The deal aims to see up to 123,000 new tourist and business arrivals from India to Victoria each year. However, it would be interesting to note that according to sources a large percentage of the increased number of visitors in the past year comprised parents of students who had come to visit them in the wake of the recent alleged racist attacks on Indians in Melbourne. The numbers seems to be too ambitious with an expected decreased inflow from India to