Merger in sky: Low-cost carriers see gain

New Delhi: Are the mega-mergers in the country's aviation landscape led by AI-IA and Jet-Sahara posing a threat to other airlines in terms of erosion of market share and bottomlines? Or is it start of a consolidation phase?
While some industry experts feel that other airlines, especially low-cost carriers (LCCs), need to be watchful on their strategies to keep on flying high, the airlines think just the opposite.
The LCCs see the Jet-Sahara merger as an opportunity to improve bottomlines. They argue that the pricing war that Air Sahara had started by under-cutting ticket prices, has come to an end. And it would give them the freedom to decide on prices.
And as far as Jet Lite the Air Sahara's reincarnation is concerned, analysts say, it won't impact LCCs much. "Jet Lite is not a low-cost carrier. Jet has positioned it as a value carrier, which is not fully low-cost, but offers fares lower than full service providers."
Some even say Jet Lite will result in a fall of Jet's business.
25/04/07 Parul Chhaparia/Times of India

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Categories: Low Cost General Apr 2007