Happier days for LCCs after Jet-Sahara marriage

Mumbai: The marriage between Jet Airways and Air Sahara will bring in happier times, believe the low cost carriers (LCC) who are currently battling low yields per passenger. With the exit of Air Sahara, which had an 8% market share in the domestic market and which used to be highly competitive in its pricing, low cost carriers say that they will be able to earn better yields per passenger.
“Jetlite is not a low cost carrier,” believes Jeh Wadia, managing director, GoAir. Jetlite is likely to be priced 20% higher than the LCCs, since the airline will be offering food and beverages on its flights.
Air Deccan, which reported a 17% market share in March 2007 is all set to push up its market presence in the domestic sector.
Says Mohan Kumar, director finance, Air Deccan, “Though Jet Airways has specified that Jetlite will not be a low cost carrier and will be a separate entity, the same management will run the airline with the same philosophy and culture of providing maximum comfort to the travellers without cutting down the cost of operations.”
21/04/07 Shaheen Mansuri/Financial Express

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Categories: Air Sahara Apr 2007, Jet Airways Apr 2007, Low Cost General Apr 2007