Indian low-cost airlines’ success on display

Mumbai: The success of India’s low-cost airlines is on display at the Paris Air Show, with a big order of Airbus aircraft from GoAir earlier in the week and more expected from Indian carriers at the show.
India’s budget carriers are thriving while the global airline industry is licking its wounds from economic recessions in the U.S. and Europe, turmoil in the Middle East, and surging fuel costs.
Beyond the buzz is a largely untapped domestic market stemming not only from India’s emerging middle class, but also a growing share of its 1.2 billion population that used to travel by trains, and other cheap means of transportation.
“In India, everybody has understood that the culture here is very cost-sensitive,” said Sharan Lillaney, aviation analyst at Angel Broking in Mumbai. “People prefer the low-cost airlines, which was where we saw huge 16%-18% growth in traffic last year.”
On Thursday, India’s GoAir said it has ordered 72 A320 Neo planes worth $7.2 billion. The Neo is a fuel-efficient aircraft that uses 15% less fuel than the A320. Read more on the Airbus order.
The deal, which topped industry analysts expectations for an order of about 50 aircraft, is the latest from an Indian carrier. SpiceJet Ltd. IN:500285 -3.25% ordered 30 Boeing 737-800s in November. IndiGo bought 180 A320 Neos in January.
18/06/11 MarketWatch

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Categories: Airshow Paris 2011, Foreign Jun 2011, Low Cost General Jun 2011