Operating cost of low-cost carrier competitive: Kingfisher

New Delhi: Kingfisher Airlines today justified its plans to close down its low-cost carrier in four months saying the operating costs involved were the same as in a full-service carrier and the revenues lesser.
Maintaining that there was more competition in the no- frill segment than the full-service segment in India, Kingfisher CEO Sanjay Aggarwal said the decision would help the airline company generate additional revenue after its exit from the low-cost service, where competition was more intense and a price war could hit the margins.
Seeking to quell concerns emanating from the decision to shut down low-cost airline Kingfisher Red, he said the move would rather generate incremental revenue for the company.
Kingfisher had entered the low-cost segment through its acquisition of Air Deccan, the country's first no-frills airline, which it later rebranded as Kingfisher Red.
05/10/11 PTI/Economic Times

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Categories: Kingfisher Oct 2011, Kingfisher Red Oct 2011