| The continuing fare tussle between the Railways and | | | | But the biggest loser so far has been Indian Airlines. |
| the Low-cost airlines has changed the contemporary | | | | Even with its trendy make over called Indian, it has |
| scenario for the Indian traveller. A ticket on India's | | | | been left with a market share of only 23.88 per cent |
| low-cost carrier (LCC) has made flying, once confined | | | | while the potential Jet-Sahara combine controls 45 |
| to the rich and elite, an affordable reality for the | | | | per cent. |
| hordes of Indians travelling across the country. | | | | As a result it is now exploring the possibility of |
| It has taken some time for the low-cost airline | | | | floating a subsidiary for low-cost operations by |
| industry to carve a niche for themselves, but the | | | | merging Air-India Express, the low-fare arm of A-I |
| wallet-friendly LCCs are here to stay. | | | | with Alliance Air, the decade-old wholly-owned |
| When Air Deccan introduced airfares almost equalling | | | | subsidiary of IA servicing tier II cities. This could |
| the AC II-tier train fares, the response from the | | | | mean that India would have its first-ever LCC, having |
| leading domestic airlines like Indian Airlines, Jet | | | | both domestic and international operations. |
| Airways and Sahara Airlines was immediate. Slashed | | | | However this fairy tale of low cost airline advent is |
| rates and Advanced Purchase schemes (Apex) | | | | still in its initial stages. |
| swiftly began to take shape, resulting upto 30 to 40 | | | | In Europe, North America and Australasia, most |
| per cent slashed fares compared with the original | | | | successful low cost airlines have operated primarily in |
| prices. | | | | domestic, or unrestricted international markets. The |
| Barely a year after Air Deccan took off came the | | | | LCCs in India on the other hand, have to operate in a |
| launch of Vijay Mallya's Kingfisher Airlines, followed by | | | | highly regulated domestic environment. This is likely to |
| SpiceJet and GoAir. Today the number of LCC's has | | | | get compounded with the surge in aviation fuel prices |
| multiplied from three to a dozen in a matter of | | | | over the past year and the plummeting infrastructure |
| months. Since the entry barriers are low, players such | | | | with congestion in airports, lack of landing facilities |
| as Paramount, IndiGO (Interglobe), Yamuna Air or | | | | and parking slots, and increasing staff costs driven by |
| Kerala Airways, have already filed flight plans. | | | | internal competition. |
| Continuing a steady progress, LCC's are slowly eating | | | | These non-frill LCCs are characterised by few |
| into the aviation market share, capturing almost one | | | | on-board services and elimination of catering. But for |
| third of the total market. | | | | the Indian travellers accustomed to travelling in the |
| However the dip in market share does not | | | | crowded trains for long hours, the aggressive tariff |
| necessarily mean a drop in the number of passengers | | | | structure by the LCCs, costing nominally higher than |
| or revenues for the mainstream airlines, as the size | | | | the AC II-tier by train, is becoming a popular |
| of the air travel segment has also been increasing. In | | | | alternative. |
| the market driven by the LCCs- with about half of | | | | With the LCCs now targeting the middle-class |
| the passengers being first-time air travellers, there's a | | | | travellers, the Indian skies are slowly but surely |
| bigger pie for everyone. | | | | opening up to the one billion plus Indian population. |