Monday, February 26, 2007

'High operating costs could hit low cost airlines'

New Delhi: A costly operating environment, high airport charges and lack of internet penetration are some of the main challenges facing low-cost airlines that have benefited from a major boom in the past three years, warns a study.
Adding to the operating costs are high fuel prices, high airport charges, congested airports and lack of deregulation in the low-cost flying sector, according to the report "Total Tourism India" from Pacific Asia Travel Association (PATA).
The report points out that the need to switch-over to e-ticketing is most pressing because there is the deadline of end-2007, by when the International Air Transport Association (IATA) will stop printing paper tickets. It says despite a big name in the software and IT sector, India ranked among countries with the poorest internet penetration and just 5.4 per cent of tickets were sold online. In contrast, e-ticketing penetration in the Asia Pacific region is 30 per cent and the global average is 40 per cent.
25/02/07 PTI/The Hindu