Cheap Airline Tickets for the Consumer Brings about Crunch time for Airlines in India
June 10, 2008 12:55 pm
Airplane
The Indian skies have never been so crowded. Today India has 5 full service carriers and 4 low-cost carriers. The consumers are loving the falling airfares and more flights and airlines to choose from even though its at the expense of stuffed airports, delays and poor service.
The LCCs (Low Cost Carriers) have few or none on-board services and have eliminated all catering facilities to cope with the low fare airline tickets they offer. The airline tickets are offered through their websites to cut down on manpower and distribution costs. The LCCs primarily target the middle-class travelers and therefore the Indian skies are slowly but surely opening up to the large previously untapped Indian population.
However, all is not smooth sailing for the airlines. The LCCs in India have to operate in a highly regulated environment. In addition to this, there have been huge rises in aviation fuel prices over the past year along with crumbling facilities, congestion in airports, lack of landing space and parking spots, and increasing staff costs driven by internal competition. Further, there is an acute shortage of licensed staff i.e. trained pilots and flight engineers in India. Due to all these factors, there has been a rise in the airline ticket rates of the LCCs over the past year.
Inspite of all of this, the Indian carriers are of the firm belief that Indian aviation will continue to grow dramatically as the affordable airline tickets continue to drive up demand. Further, competition will definitely intensify as new carriers enter the market to benefit from this once in a life time opportunity.
Bikash Banerjee,
Marketing Manager,
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