India’s LCCs hit from all sides
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Low-cost carriers (LCCs) were meant to be an engine of growth but many in India have now hit turbulence, an Economic Times report has said.
Though the aviation sector as a whole is in decline, LCCs have been hit the hardest by a combination of factors such as high fuel prices, difficult acquisitions, downsizing and bad management, according to the report.
The father of India’s ‘no-frills’ revolution, Captain GR Gopinath, was quoted saying that the typical low-cost carrier were about “innovation and efficiency to bring in more customers”.
But that could only happen, he said, if the business model was strictly followed, with salaries, manpower, turnaround time and routes properly strategised.
According to Sushi Shyamal, Associate Director at accounting firm Ernst & Young, said the fare difference between LCCs and that of regular airlines was marginal now.
“In effect, India’s no-frills airlines are now, not only competing among themselves but also with regular carriers. It’s not a contest, at all,” he was quoted saying.
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