As passenger traffic improves, low-fare services take back seat

Airlines are slowly scaling back low-cost services and expanding full-service operations as economic growth accelerates and companies lift travel restrictions imposed on executives to cut costs.
Jet Airways (India) Ltd, the country’s largest airline by passengers carried, is converting at least 63 flights under low-cost brand Jet Airways Konnect into full-scale Jet Airways flights.
Kingfisher Airlines Ltd’s low-fare service Kingfisher Red is offering services usually associated with premium travel to front-row passengers, an airline official said.
Air India, run by the state-owned National Aviation Co. of India Ltd (Nacil), has deferred the introduction of a low-fare carrier for domestic routes, a senior official said.
Both the Kingfisher and Air India officials did not want to be named.
Full-service flights offer economy class and the costlier business or first class and provide special meals and extra leg room for passengers travelling in the latter.
Airlines had started relying more on low-cost operations, which are typically without any frills, during the economic slowdown that followed the global financial crisis of 2008. Jet Airways introduced Konnect in April 2009, offering tickets 10-15% lower than the economy fares of the full-scale carrier.
The airline also introduced a semi-business class brand, Jet Airways Konnect Select, in May 2009, in which the tickets were 20-25% cheaper compared with the usual business class.
Kingfisher Airlines shifted many flights under Kingfisher Red to beat the slowdown.
But the trend seems to be reversing.
13/09/10 P.R. Sanjai/Live Mint

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Categories: Indian Aviation- In General Sep 2010, Low Cost General Sep 2010