Globally, low-cost carriers (LCCs) have a totally different model – right from choice of routes, ticketing, check-in, passenger service, baggage rules, labour engagement to aircraft configuration. Unfortunately in India, our LCCs have only a slightly better cost structure (primarily aircraft configuration, salaries), but they mirror full service carriers (FSC) on all other parameters. No wonder, the LCCs in India are struggling to survive and are essentially “lower priced carriers”.
One key parameter where LCCs differ globally from FSCs is the choice of airport. Flying out of low cost airports enables airlines operate more efficiently and unbundle services, thus resulting in lower airport-related costs (up to 13 per cent).
Low cost airports are characterised by the absence of grandiose buildings, less space per person compared to international terminals, and significantly lower investment.
The Airports Authority of India (AAI), as part of its suggestions to the Ministry, has included doing away with luggage scanning X-ray machines and conveyor belts for the low cost airports.
The benefit of having these low cost terminals is three-fold.
First, LCCs prefer low cost airports as these are relatively uncongested and free from ground and air traffic control delays. Lack of congestion and faster turnarounds enables LCCs to increase their productivity and lower their operational costs.
Second, it would increase air connectivity to tier-II and tier-III cities, making these cities directly accessible without having to pass through major hubs like Delhi, Mumbai and Bangalore. With significantly lower investments, both passenger and airline fees would be correspondingly lower. This can really spur the growth of international short haul traffic from India.
19/01/14 Girish Shirodkar/Business Line
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One key parameter where LCCs differ globally from FSCs is the choice of airport. Flying out of low cost airports enables airlines operate more efficiently and unbundle services, thus resulting in lower airport-related costs (up to 13 per cent).
Low cost airports are characterised by the absence of grandiose buildings, less space per person compared to international terminals, and significantly lower investment.
The Airports Authority of India (AAI), as part of its suggestions to the Ministry, has included doing away with luggage scanning X-ray machines and conveyor belts for the low cost airports.
The benefit of having these low cost terminals is three-fold.
First, LCCs prefer low cost airports as these are relatively uncongested and free from ground and air traffic control delays. Lack of congestion and faster turnarounds enables LCCs to increase their productivity and lower their operational costs.
Second, it would increase air connectivity to tier-II and tier-III cities, making these cities directly accessible without having to pass through major hubs like Delhi, Mumbai and Bangalore. With significantly lower investments, both passenger and airline fees would be correspondingly lower. This can really spur the growth of international short haul traffic from India.
19/01/14 Girish Shirodkar/Business Line
