Wednesday, January 14, 2009

LOWCOST AIRLINES NOT SUITABLE FOR INDIA

India is not a suitable country for low-cost airline operations as it not only lacks infrastructure like low-cost secondary airports but also the cost of their staff is at par with full service carriers (FSC), a study has claimed. 

Also, the LFCs have to face tough competition from Indian Railways and road transport for destinations of shorter durations.                                                

"India has very few secondary airports from which the low fare carriers (LFCs) could operate. Of the 127 airports with the Airports Authority of India, only 80 are operational," aerospace expert Harmoz P Mama claimed in a study 'Civil Aviation in India: Challenges and Prospects'. 

Highlighting the poor airline coverage of smaller airports of the country, he said, "The top five airports in India handle about 70% of all domestic passenger traffic in India, which indicates poor airline coverage of most of the other airports." 
Beyond these are primarily small, crumbling airstrips with huts masquerading as terminal building which are totally unsuitable for airline operations, he claimed. 

The low fare airlines in order to save their staff -- particularly the pilots and engineers -- from being poached have to pay salaries on a par with those of FSCs, he said.                                                Apart from it, low-cost airlines also have to bear the brunt of the high price of Air Turbine Fue(ATF), which actually is a high percentage of their total costs.

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