Kingfisher to reconfigure all its airbus aircraft over next 4 months

Following an announcement made last week about Kingfisher Airlines’ (Kingfisher) focus on the full service segment of air travel, there has been a lot of speculation in sections about the media around.
Sanjay Aggarwal, CEO, Kingfisher Airlines Ltd stated"I would like to set the record straight and clear up any misconceptions around this announcement.
It is important to carefully analyse and understand the low cost or low fare segment of the Indian aviation industry.
Let me begin by answering the most common question: Why focus on the full service product?
Operating costs of so called low cost carriers and full service carriers in terms of fuel, airport charges, engineering and maintenance and crew costs are similar. Full service carriers incur additional costs on global distribution, in-flight catering, ground amenities and the frequent flyer programme. These additional costs are more than recovered through higher yields.
In addition to large aircraft orders placed at time of start up in 2004/2005, the Indian LCCs in the recent months have placed orders for over 250 aircraft. In the last two years, capacity induction of the LCCs has outpaced the demand growth in the domestic market. The induction of so many additional aircraft in the low cost / low fare segment will potentially lead to substantial over capacity and a price war with declining yields.
05/10/11 India Infoline

To Read the News in full at Source, Click the Headline

Categories: Kingfisher Oct 2011