Low-cost carriers SpiceJet, IndiGo and GoAir have cut fares sharply, just a week after they abruptly raised these following a 20 to 25 per cent slump in sales.
India needs a host of low-cost carriers, like in other countries, to enable more people to fly, global consulting firm A T Kearney said on Friday.
It says the move will help generate additional revenue.
Kingfisher's departure from the Low Cost Carrier (LCC) segment shows that running an LCC is no cakewalk, requiring a whole new management philosophy.
The country's leading low-cost air carriers -- IndiGo, SpiceJet and GoAir -- are set to nearly double their fleet capacity over the next 17 months.
Our business is very targeted. It's just domestic India, low fares, be on time, hassle free, no long lines, no fuss.
The overall responsibility of the low-cost carrier, Air India Express, would be that of Joint Managing Director Vishwapati Trivedi, with P P Singh being appointed its Chief Operating Officer. Both of them would be based in Delhi, sources said.
As competition in the low-cost carrier (LCC) space increases, many of them have doubled their advertising spending, increased promotional offers and even gone in for a completely new look and feel, as they take on growing competition from the likes of Kingfisher, Jet Airways and Air India.
With the Bangalore airport announcing stiff user developmental fee on domestic passengers, low-cost carriers -- JetLite, SpiceJet and Simplifly Deccan (formerly Air Deccan) -- have decided to drastically cut their flight schedules to the city and other new airports like Hyderabad.
Launch on 10 sectors in the winter schedule.
Let's take a look at cities that are seeing biggest increase in low-cost airlines's seat capacity.
To add aircraft, more services this year, even as full-service airlines hold their expansion plans.
The government has cleared the acquisition of 46 new aircraft worth over Rs 19,000 crore (Rs 190 billion) by three low-cost carriers: SpiceJet, IndiGo and Jet Lite.
The new low-cost carrier, IndiGo, which placed India's biggest orders for 100 Airbus aircraft at the Paris Air Show last year, will start operations in July-August with its own aeroplanes.
At the height of its troubles and desperate to mop up cash to fly the next day, SpiceJet was offering ridiculously high deposit incentives to travel agents and online portals -- incentives it could ill afford.
Jet Airways, the largest domestic airline, will merge its no-frills brands JetLite and Jet Konnect and operate under the brand name of the latter.
Information technology (IT) solutions provider Amadeus, in a recent study, found that 60 per cent of the companies used low-cost carriers (LCCs) to fly their executives. Around 100 companies were surveyed.
Indian business group Wadia is to join an ever-growing queue of companies wanting to launch a low cost domestic airline, the Economic Times reported Wednesday.
Air Deccan, which was renamed Simplifly Deccan after the merger with Kingfisher last year, is now called Kingfisher Red. According to the data released by the civil aviation ministry on Thursday, IndiGo's market share is 10.3 per cent, while that of Air Deccan trailed behind at 10.2 per cent.
Southwest Airlines remains the world's biggest low cost carrier (LCC), according to Centre for Asia Pacific Aviation (CAPA).
Southwest Airlines remains the world's biggest low cost carrier (LCC), according to Centre for Asia Pacific Aviation (CAPA).
The post, markedly different from its usual X feed -- typically focused on low-cost tariff plans and anti-spam measures -- appears to ride on Samay Raina's popularity.
The civil aviation ministry and the directorate general of civil aviation plan to award the low-cost carriers some key morning and evening peak-time slots (a fixed time for departure or arrival of a particular flight) lying unused with the full-service carriers at metro airports like Delhi and Mumbai. DGCA officials and airline officials confirm that airlines like Jet and Kingfisher are not using around 10 per cent of their slots during the peak periods.
Paramount Airways and Club One Air make different promises. Will they fly the long distance?
Industry sources and certain airline executives revealed this was done after the LCCs hammered out their differences with full-service carriers on certain contentious issues related to pricing. Industry source said the fares had been lowered as a protest against the full-service carriers' sale of coupons worth Rs 300 crore (Rs 3 billion) and valid for six months to travel agents across the country at prices that were 20-30 per cent less than those available on their websites.
Routes abandoned by long-haul Gulf carriers like Emirates and Etihad have given Indian low-cost carriers an opening. But can they compete with Air Arabia?
Seats being offered by LCCs in international routes up from 3% of the total last year to 10%.
Air India group announces fuel surcharges on domestic and international flights due to rising Aviation Turbine Fuel (ATF) prices, following the government's decision to cap domestic ATF price hikes.
After budget carriers, the Indian skies will soon see the first low-cost charter service. Charter operator Club One Air is going to launch its domestic low-cost operations next year at prices 50 per cent below those currently charged by charters. Thus a Delhi-Kullu chartered flight, which costs Rs 60,000 per person at present, would cost Rs 30,000 once Club One Air starts flying.
Kingfisher and Deccan had appointed Accenture to study the structure of the merger of the two airlines including operational synergies, network rationalisation and management structure.
Even low cost carriers IndiGo, Paramount Airways are now in talks to join the Jet Airways-Kingfisher Airlines alliance to cut costs. After Kingfisher took over Air Deccan, fares have gone up steadily. Other low cost carriers have also hiked fares.
Konnect to be phased out as airline struggles to contain losses.
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