Global low-cost airlines struggle in India

Bangalore: International low-cost carriers flying into India have hit serious air pockets. NOK Air, Tiger Airways and Jetstar Asia have already faded from people's memory. Some of the few remaining players are said to be struggling to generate a decent economic return.
From January 11, Malaysian low-cost carrier AirAsia ceased operating out of Hyderabad and Thiruvananthapuram. Last year, it scaled down its Bangalore operations from a daily flight to four flights a week. It's also withdrawing its Chennai-Penang route, on which it had a complete monopoly, and instead converting that to a Trichy-Kuala Lumpur route.
Bruising fare wars have been one reason for the exits by these carriers. But there are other equally important reasons: low load factors, poor onward connectivity and competitive holiday packages offered by full service airlines.
"International point-to-point traffic is limited for these low cost airlines," said Ankur Bhatia, executive director of aviation consultancy firm Bird Group. So, if your flight gets delayed at your India boarding destination, and you miss the onward flight, these carriers don't have the bandwidth to quickly provide an alternative or to put you in a hotel.
Thai low-cost carrier NOK Air began operations in June 2007, it was positioned as a shoppers' airline offering discounts at malls in Bangkok. But the airline withdrew the Bangalore-Bangkok route in November of the same year. This was attributed to poor passenger response.
Singapore-based Jetstar Asia also met a similar fate three years back. It suspended the five flights per week service on the Bangalore-Singapore sector.
For AirAsia, some of the withdrawals have been on account of poor load factors.
14/01/11 Shilpa Phadnis/Times of India

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Categories: Foreign Jan 2011, Low Cost General Jan 2011