Low Cost Airlines are not Always Better

Contents
Airline

First Airlines
Overview of Indian Aircraft Industry Major Players Market Share Low cost Airlines Low cost Airlines of India Advantage of low cost Airlines

Disadvantages Of low cost Airlines

Conclusion

Airlines
An airline provides air transport services for traveling

passengers and freight. Airlines lease or own their aircraft with which to supply these services and may form partnerships or alliances with other airlines for mutual benefit. Generally, airline companies are recognized with an air operating certificate or license issued by a governmental aviation body.

The First Airlines

American aviation pioneers, such as Rufus Porter and

Frederick Marriott, attempted to start airlines using airships in the mid-19th century, focusing on the New YorkCalifornia route.

Cont..
DELAG, Deutsche Luftschiffahrts-Aktiengesellschaft

was the world's first airline.

Air India was the first airlines to start its operation in

India. Air India was founded by J. R. D. Tata in July 1932 as Tata Airlines, a division of Tata Sons Ltd. (now Tata Group). The slogan of Air India is Your Palace in the Sky

Indian Aircraft Industry

India emerging as a major origin and destination for

international travel have all had a significant impact on commercial aviation in India.
According to the airports authority of India (AAI), the

passenger traffic is expected to grow at over 20% in the next five years.
since 2003, when low fare travel in India was ushered in,

a number of low cost carriers (LCC) have entered to serve this fast growing market.

Cont..
However, all of the LCC carriers andwith rare

exceptionseven the full service carriers (FSC) charging higher fares have been making losses.
By and large, operating a commercial airline in India

so far has not been a profitable business.

Major Players
Air India

Launch: 1st August 1953 Variable fare, all frills. Merged with Indian Airlines in 2007.
Jet Airways

Launch: May 2005 Variable fare, all frills. Its economy class subsidiary Jetlite. Flies to over 62 destinations both domestic & international.

Cont..
Air Deccan

Launch: August 2003 Low, variable fare, no frills. Only Economy Class. Was acquired by Kingfisher and later renamed Kingfisher Red
Kingfisher Airlines

Launch: May 2005 Variable fare, all frills. Single Kingfisher class. Premium in-flight service. Only metro destinations.

Cont..
SpiceJet

Launch: May 2005 Low, variable fare, but not cheap quality service. Low frills, small complimentary snack.
GoAir

Launch: October 2005 Low-cost, low-frill airline. Mix of metro and small cities. Initial focus to be western India.

Market Share
Airline/Company Jet Airways (including Jet Lite) % Share 27.6%

IndiGo Air India

Spice Jet Kingfisher GoAir

20.4% 17.4%
16.8% 12.1% 5.7%

Low Cost Airlines

A low-cost airline is an airline that generally has lower

fares and fewer comforts.

The airline may charge for extras like food, priority

boarding, seat allocating, and baggage etc.

A low-cost airline offers a point to point service, rather than

the hub and spoke model concept followed by conventional full service airlines

Some low-cost Airlines of India

1. Air-Indian Express

2.Go Air

3. IndiGo

4. JetLite

 5. Jet Konnect

6. Kingfisher Red

7. Spicejet

Advantage of low cost Airlines

Some of the prices are amazingly low. If passengers time

it right, they can travel almost for free, often paying little more than the cost of the airport taxes.
For those willing to be flexible with times and/or book

well in advance, there are definitely some bargains to be had.

Disadvantages of low cost Airlines

The airline charges extra for food, priority boarding, seat

allocating, and baggage etc.

Changing passenger details and/or dates can prove very

expensive or even impossible.

Food and drink will not be provided on the plane unless

the traveler pays.

One cannot book a specific seat.

Cont..
Prices can change very quickly, even going up while the

passenger is booking on-line.

Low cost airlines are expected to go bust. Its worth bearing in mind that sometimes passengers get

exactly what they pay for - no more, no less!

have only direct flights and they do not guarantee

catching any other flight afterwards.

Are budget airlines the cheapest way to fly? The practice of investing & hiking up cost is common among low cost airlines, while they are trying to keep overhead cost down in a competitive industry. They have recently started charging more for details that most consumers dont even notice.
||||||| ||||||| Extra Charges Air India Air Deccan Spice Jet Average

Ticket Charges
Reservation over phone Baggage Food

$100
$15

$70
$25

$100
$20

$90
$20

$20 $35

$15 $30

$25 $25

$20 $30

Conclusion
The Low-Cost Airlines are not always beneficial.
Travelers do have to bear in mind that low cost

airlines are not the same as others.