It’s not always about the money, but comfort as well

Kolkata: Can airlines increase fares and yet not feel any impact on the load factor? Well, according to the Centre for Asia Pacific Aviation (CAPA), this could well be the scenario.
According to a survey by the body, 67% of full-service carrier (FSC) passengers and 51% of low-cost carrier (LCC) passengers would still have travelled by air if the fares had been double.
Around 57.5% of passengers said they would fly with an FSC rather than a LCC even if the trip was personal and self-financed.
About 67% of FSC passengers also said they chose their flight according to a convenient schedule or a previous experience compared with 9% whose choice was based on price. About 38% of LCC passengers chose their flight according to a convenient schedule or a previous experience, equalling the percentage of LCC passengers (38%) whose choice was based on price.
Based on these findings, CAPA wondered whether Indian carriers are reading the market correctly. “The aviation industry in India could potentially sustain fare increases by all carriers,” said CAPA in its study.
02/08/07 Madhumita Mookerji/Daily News & Analysis

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Categories: General Aviation Aug 2007