Capt. Gopinath mocks critics of low-cost carriers

New Delhi: With full-service airlines like Jet Airways beginning to offer cheap fares, the pioneer of low-cost flying in India, G R Gopinath, is making a mockery of critics of budget carriers.
"Even today, only 3 to 4 per cent population of the country travel by air. There is huge potential in the LCC segment as it offers attractive fares to the common people," Mr. Gopinath said.
Questions have, however, been raised over the viability of operating the low-cost model, specially when jet fuel prices touched a record high last year. Kingfisher Airlines Chairman Vijay Mallya, in particular, had been very critical of low-cost models, saying that budget carriers cannot survive in India.
Seeking to silence the critics of the low-cost model, Mr. Gopinath said: "Budget carriers have 22 per cent more seats as compared to a full-service carrier. Low fare attracts more passengers ... more passengers and more frequency bring down the operating cost. So how is it that LCCs are not viable for a country like India?"
The Centre for Asia Pacific Aviation (CAPA) in a report predicted that there is hardly any market for full-service domestic airlines beyond the six metros and that the future belonged to budget carriers.
10/05/09 PTI/The Hindu

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Categories: Indian Aviation- In General May 2009, Low Cost General May 2009