LCCs on way to take lion’s share of sky

Mumbai: Low-cost airlines are inching towards capturing half of the total commercial airline market in the country. Latest marketshare figures released by DGCA for the January-March 2008 quarter show total share of LCCs has grown to 48%, a shade short of the half-way mark. Five airline brands now operate in the low-cost space versus four full-service operators.
The model seems to have finally found a foothold in a high-cost market like India. Four-and-a-half years after the launch of the first LCC, the carriers, who were told that “there is no such thing as a low-cost airline in India”, have proved that they are here to stay.
Legacy airline chiefs, who have made similar declarations in other markets like the UK and Malaysia, have had to eat their words because of the successes of airlines like Ryanair and Air Asia. In India, they simply launched or bought over other low-cost or value airlines.
17/04/08 Cuckoo Paul/Economic Times

To Read the News in full at Source, Click the Headline

Categories: Low Cost General Apr 2008