Saturday, April 29, 2006

New tactics played out in battle for the skies

Mumbai: The battle for the skies is increasingly being fought on the ground with low cost carriers (LCCs) aiming to commoditise air travel. LCCs have managed to grab a substantial 23% of the market share over the last one year while legacy carriers have lost 18% of the share in the same period.
However, here is a caveat. “We are witnessing some suicidal tricks in the market with freebies being offered. The fun and games have just begun. The LCCs are taking one other head-on in their early stages of growth,” said Air Deccan chief operating officer Warwick Brady. He was addressing the Second Annual India & Middle East Aviation & Tourism Investor Summit organised by CAPA here on Friday.
Spicejet Director Ajay Singh said, “Tariff stimulation will be the key to increase in volumes for LCCs just as in the case of Indian mobile telephony.” However, glaring issues like high landing charges, ground overheads and government taxation need to be addressed first.
29/04/06 Financial Express