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FEATURE INDIAN LOW COST CARRIERS

year-on-year, with 61 million domestic Shifted thinking
passengers carried in the 12 months to But a significant shift in thinking in 2003
March 2012 (a major increase from 14 saw the launch of Air Deccan’s low-fare
million in 2003), the country’s initial foray service. At that time flying was seen as
into deregulating its airline industry can elitist, and a mere 0.3% of the country’s
only be described as disastrous. one billion population were potentially in
“In 1994 the domestic market the market for air travel.
was deregulated, and a dozen private “The price-sensitive market responded
carriers launched operations,” explains favourably,” recalls Somaia. “The launch
Binit Somaia, the Centre for Aviation of Air Deccan created a real buzz and
(CAPA)’s Director South Asia. “Within a lot of media interest was generated
three years, all but two had closed. around [cheap] 10-dollar seats.” Potential
The high level of failure in such a short customers “became very excited”, and
space of time forced the government between 2003 and 2007 domestic traffic
to become very conservative and put a grew at between 20% to 40% per annum.
stop to the entry of any further private At that time, the Indian economy was
carriers,” he adds. also growing at 8% to 9% year-on-year,

INDIGO GOES FOR RAPID cLIMB
Last year, IndiGo managed to topple Jet Airways as largest domestic airline
in India, with a 27% market share. In September 2012, Firstpost.com
RIGhT, FROM TOP: India’s reported, “Over the last three months, the domestic air travel market has
first Lcc Air Deccan was shrunk by about 700,000 passengers. Only 4.36 million Indians took to the
an instant success which domestic skies in August against 4.53 million in July and five million in the
month of June. [And yet,] over 1.2 million passengers chose to fly IndiGo
was later acquired by against 816,000 who flew Jet Airways.” considering the airline only launched
Kingfisher. however the in 2006, that’s a pretty good showing!
bubble did not last long
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