Indian LCC alliance in the offing?

Taking a cue from the strategic alliance of Jet Airways and Kingfisher Airlines last week, there are strong speculations in the industry that Indian Low Cost Carriers (LCCs), SpiceJet, GoAir and Indigo are considering an alliance to work towards a profitable business model. While two of the three have denied any kind of development, they may consider the situation if and when an offer arises; only one confirmed that decisions are constantly being made in this direction and the airline is seriously working towards it. LCCs are suffering losses to the tune of Rs two – four crore a day.
Analysing the Indian aviation industry, Jet and Kingfisher control about 60 per cent of market share while the rest of the carriers like SpiceJet, GoAir and Indigo control around 25 – 30 per cent. According to sources in the industry, “This is the right time for the LCCs to enter into an alliance so as to manage the low cost model in India and strengthen their market share.”
16/10/08 Anita Jain/TravelBizMonitor

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Categories: GoAir Oct 2008, Indigo Airlines Oct 2008, New Oct 2008, SpiceJet Oct 2008