Foreign no-frill airlines fly into tier-II towns

New Delhi: When fly dubai started operations to Lucknow in June, many were surprised. Why would Dubai's first low cost carrier (LCC) choose a Tier II city for its maiden Indian route? Would a metro not have been the obvious choice? But this is good business strategy, something that other foreign carriers have done as well.
Air Asia, from Kuala Lumpur and Air Arabia, from Sharjah, fly to various Tier II cities — Trichy, Coimbatore, Kozhikode, Kochi, Lucknow, Nagpur, Jaipur and Ahmedabad.
Aviation experts say that Tier II cities have huge potential because they are populous and their residents have increasingly disposable incomes and the desire to travel.
Air Asia agrees it was good business thinking on their part to choose Trichy as their first Indian route and follow this up with eight other Tier II cities. Its CEO Tony Fernandes says the Indian market is second only to China. The thinking is obvious.
Cheap foreign carriers choose Indian cities that have particular needs or particular meaning to the wider world. Air Asia chose Trichy because it is a popular pilgrimage site. Lucknow was attractive to flydubai because it is one of India's fastest growing cities, with a presence in the manufacturing, commerce, retail and education sectors.
Unfortunately, while the Indian skies have opened for foreign carriers, the reverse has not happened.
10/10/10 Shobha John/Times of India

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Categories: airports Oct 2010, Foreign Oct 2010, New Oct 2010