Low-cost carriers make hay as companies cut costs

The next time you fly a low-cost airline, don’t be surprised to find the CEO of a company in the seat next to yours.The days of corporate frequent fliers plonking themselves in plush seats at the pointy end of a plane are over. Companies are cutting corners like never before, forcing their executives to shift to no-frills airlines that do not serve even a complimentary bottle of water.
The downturn-induced migration from business to cattle class has led to low-cost airlines doing good business in the past two months.
IndiGo’s passenger load this month is 10 per cent more than the figure for the corresponding period last year. “We have touched 84 per cent despite higher fares than last year and more flights,” an official of the airline said over phone from Delhi.
IndiGo had 13 daily departures from Calcutta airport last year. The number has increased to 15 this year and the airline is tying up with companies to offer cheaper fares for business travel.
SpiceJet, too, has benefited from the switch. “Business on the metro routes is good because these are the sectors where we have the maximum number of business fliers,” an airline official said.
The Airlines Operators’ Committee, Calcutta, confirmed that regular airlines had taken a hit while low-cost carriers were getting more passengers since the meltdown began.
18/11/08 Sanjay Mandal/The Telegraph

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

Categories: Low Cost General Nov 2008