Friday, April 28, 2006

Low-cost airlines grab 1/3rd market

New Delhi: Small hikes aside; there is increasing demand for popular low cost airlines that are eating up aviation market share. Growing at almost 41 per cent annually, they have captured one third of the total market. CNN-IBN reports that in many of these airlines about half of the passengers are first time fliers.
The crumbling infrastructure and frequent flight delays have not deterred people from taking to the skies. Last year about 19 million domestic airline tickets were sold.
This year that number has grown by about 25 per cent to nearly 24 million. And who is driving this growth? It is the cheap tickets from the new low cost airlines.
Low cost carriers including the high frills Kingfisher, now control almost 30 per cent of the market.
The biggest loser has been Indian Airlines with its trendy make over called Indian. It has been left with a market share of only 23.88 per cent while the Jet-Sahara combine controls 45 per cent.
Kapil Kaul, CEO, CAPA India says, “Low cost airlines are expected to take almost 50 per cent market share before 2010. “
28/04/06 Arijit Banerjee/CNN-IBN
To Read the News in full at Source, Click the Headline


Post a Comment