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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Article
India’s Engagement With Indonesia: Potentiality Lies in Air Services
Author(s)
Anil K Kanungo
Abhishek Jha
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DOI:10.17265/2160-6579/2018.02.005
Affiliation(s)
Lal Bahadur Shastri Institute of Management, New Delhi, India
Jawaharlal Nehru University, New Delhi, India
ABSTRACT
Global financial crisis and subsequent protectionist
measures of US government motivated Indian government to look for opportunities
towards ASEAN nations through “Look East Policy.” While scouting for opportunities, it was found that Indonesian air services market is buoyant and promising
where Indonesia has recently liberalized its open sky policies for inviting domestic
as well as foreign investment. Time is appropriate for Indian government to negotiate
on how India can participate in Indonesian domestic market and provide air services
to its consumers. The paper tries to analyze how Indian private domestic
airlines can enter into the markets of Indonesia and whether they would be able
to provide such services. It further tries to examine that certain value
addition services in terms of auxiliary air services are currently required for
Indonesia. To that extent, how is India going to capitalize such opportunities
by providing such competitive value addition services? Indonesia is currently witnessing
frequent air accidents and making safety as a major concern for consumers. It tries
to argue whether India can provide technical and other support services to reduce
such hazards. The research methodology includes Input-Output Table calculating using WIOD
(World Input Output Database) database. National Input-Output Table for analyzing Indonesian air services
was also consulted for authors’ own calculations.
KEYWORDS
air services, ASEAN, auxiliary services, Input-Output Table, WIOD database
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