Why new airports and airlines don't necessarily mean stronger competition
New Delhi, Nov. 4 -- When India opened its civil aviation sector to greater private participation, the promise was straightforward: more competition, better services and greater choice for consumers.
A report in 2009 by CUTS on regulation and competition in civil aviation had advocated the opening of India's closely held market. But the entry of more players may not automatically translate to effective competition or improved consumer welfare. What matters is whether market arrangements and efficient functioning of the airlines actually benefit the market.
That question has returned in a new form. If an airport operator is also permitted to own an airline, could it bring fresh investment and competition to the Indian aviation sector, or...
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