Top foreign and Indian aviation experts on Monday said the flurry of private investors showing interest in setting up no-frill airlines sent a signal to the government of the massive untapped potential in the aviation and tourism market in India and the region.

Observing that Indian aviation system was now poised for take-off, Peter Harbison, chief of the Sydney-based Centre for Asia Pacific Aviation, warned that if the government waits for another year, it would "risk a severe downgrading of India's options as a world aviation power."

Speaking at a two-day symposium on low cost airlines, he said the Indian government no longer has the "luxury of time" and needs to go ahead with the opening of the civil aviation sector on the lines laid down by the Naresh Chandra committee recommendations.

A host of CEOs and top officials of Indian and foreign carriers, including Sri Lankan Airlines, Indian Airlines, Jet Airways, Air Sahara, Air India, Virgin Blue, Air Deccan, Air Arabia and Air Asia, are participating in the symposium.

Quoting the example of the collapse of Australian carrier Ansett and the emergence of low-cost Virgin Blue as a real competitor to Qantas, Harbison said it was no surprise that the investment community was now turning towards the new breed of no-frill carriers.

He said in North America, almost 60 per cent of the business travellers used low cost carriers last year and added this was indicative of "commoditisation of the airlines market."