Low Cost Airlines Vs. Indian Railways: Competition, heating

Continued interference between rail and low-cost airlines changed the current scenario of an Indian traveler. The Low Cost Carrier (LCC) ticket from India brought flying, which was once limited to a rich and elite, cost-effective reality for hordes of Indian people traveling across the country.

He needed some time for the low-priced aviation industry to take its place, but wallet-friendly services are available to stay.

When Air Deccan introduced air fares that are almost in line with the AC II tariffs, there was an immediate response from leading domestic airlines such as Indian Airlines, Jet Airways and Sahara Airlines. Rate cuts and advanced purchasing schemes (Apex) quickly began to shape, resulting in a 30 to 40 percent reduction over the original prices.

Just a year after Air Deccan started, Vijay Mallya Kingfisher Airlines was launched, followed by SpiceJet and GoAir. The number of LCCs has multiplied by three to dozens in several months. Because entry barriers are low, players such as Paramount, IndiGo (Interglobe), Yamuna Air or Kerala Airways have already submitted flight plans.

Continuing steady progress, LCC is slowly engaged in the share of the aviation market, accounting for almost a third of the total market.

However, a reduction in market share does not necessarily mean a decrease in the number of passengers or revenues of major airlines, as the size of the air transport segment is also increasing. In the market that controls the LCC – with about half of the passengers being airline passengers for the first time, there is a bigger pie for everyone.

But the biggest loser has so far been Indian Airlines. Even with its trendy offer over India, it remained with only 23.88 percent market share, while the potential Jet-Sahara combined 45 percent.

As a result, it is now exploring the possibility of joining a subsidiary for low-cost operations by merging Air-India Express, AI's low-threshold arm, with a ten-year subsidiary of IA II. This could mean that India will have its first LCC with domestic and international operations.

This tale of low-cost air adventures is still in its infancy.

In Europe, North America, and Australia, the most successful low-cost airlines were operating primarily on domestic or unlimited international markets. The LCC in India, on the other hand, must work in a highly regulated home environment. This is likely to be compounded by last year's surge in aviation fuel prices and a bottleneck at airport congestion, a lack of landing gear and parking facilities, and an increase in personal costs due to internal competition.

These non-decorative LCCs are characterized by several on-board services and elimination of meals. But for Indian travelers who are used to traveling in crowded trains for hours, the aggressive LCC tariff structure, which is on a train nominally higher than AC II, is becoming a popular alternative.

With the LCC, which are now targeting middle class passengers, the Indian sky slowly but surely opens up to a billion Indian population.

Copyright (C) Manoj Gursahani

Source by Manoj Gursahani