The proceedings of the Paris air show demonstrate the transformation a dose of liberalization can bring about. Indian airline companies have been one of the biggest buyers in the show. More than half of the $13 billion jet deals went to Indian companies which bought from both Boeing and Airbus. Jet Airways alone placed orders worth $ 2.8 billion with Boeing. This is a sign of the flourishing of private airline companies after the government, under the impact of economic reforms, decided to open up the skies. It is just not the private airlines alone, but the impact of the market forces has also been felt in the offices of Air India and Indian Airlines. Competition has forced them out of their somnolence and their complacency. As long as government-owned airlines monopolized the Indian skies, they paid scant regard to customer comfort, maintenance and fixed fares that had no relation to either supply or demand. Also, because they were government-run enterprises, they had to fly on routes which had to be heavily subsidized. This situation began to change with the onset of economic reforms. Not all private airlines that took wing succeeded in remaining airborne for a sustained period of time. But the few that did have scored in efficiency, service and in offering competitive fares. The real loser has been Indian Airlines, which has lost its monopoly status in domestic routes. The case of Air India is slightly different but it has also been hit hard by the number of airlines, foreign and Indian, the latter privately-owned, which are keen to fly to and from India.

The transactions at the Paris air show are signs of the eagerness of Indian airline companies to exploit the growing opportunities in India. With competitive fares being offered, flying for business and for pleasure is becoming more and more popular. This demand is likely to grow as economic reform gathers further momentum and prosperity increases. Civil aviation in India is poised for a boom. The net gainer of this unfolding process will be the consumer. He will have before him a range of choices in terms of fares, routes, timings and airlines. The latter will be forced to provide better service and maintain higher standards of maintenance and safety. Critics of economic reforms should learn from the process. People who had never flown before are now frequent fliers and more are in the queue.