Friday, May 10, 2013

Stiff competition: Jet, Air India may take on IndiGo’s numero uno status


IndiGo, the fastest growing airline in India, could face some headwinds going forward as other airlines become more competitive. Jet Airways is expected to place an order for 50 A320 neos which will be deployed for LCC operations under its subsidiary, JetKonnect. Air India has already firmed up plans for a sort of hybrid LCC operation where it has decided to lease 19 Airbus 320 aircraft with an all-economy seating.
The LCC model is based on single configuration seating and what Air India is doing is to compete with LCCs by not only offering single class configuration on its aircraft but also by increasing the total number of economy seats available.
SpiceJet is widely expected to secure a foreign partner for itself this year whereas reports suggest that GoAir is also looking for buyers. Then, AirAsia, the ultra low cost airline from Malaysia, is likely to begin operations before the year comes to and end and another South East Asian LCC is also expected to come down to India.
10/05/13 Sindhu Bhattacharya/First Post.com
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