Bangalore: In India, a sizeable chunk of people, who have never flown before, are keeping away from small planes like ATRs due to fear factor. Even, doling out Re 1 and Rs 3 tickets may not be enough to attract them.
Further market expansion is linked to this fear syndrome. About 35-40% of travellers in low-cost carriers like Air Deccan, Spicejet and IndiGo are first-time flyers.
Analysts say load factor of low-cost carriers could improve by another 10% if this scare of boarding smaller aircraft is rooted out.
"There are some who link low-cost carriers with lack of safety,"says aviation consultant Praveen Paul. "That's unfortunate, but that's the case. Some people think that paying a low fare could mean greater risks."
Low-cost carriers like Air Deccan believe that the issue will take some time to settle.
26/09/06 Times of India
To Read the News in full at Source, Click the Headline
Tuesday, September 26, 2006
Home »
» Budget carriers face fear factor
Budget carriers face fear factor
Tuesday, September 26, 2006
Related Posts:
SpiceJet plan for revival yet to be airborne "It was a constructive meeting," chief operating officer Sanjiv Kapoor told reporters after meeting civil aviation secretary V. Somasundaran here tod… Read More
We have cleared employee salaries, fuel dues, SpiceJet says New Delhi: Troubled Indian carrier SpiceJet Ltd has paid employees' salaries for November and cleared dues of fuel companies as of Friday, its chief … Read More
Alight before 6-month notice period, Spicejet tells 50 pilots New Delhi: Even as it awaits investors, troubled low-cost carrier SpiceJet is busy trimming costs. On Friday, the airline’s management asked around 5… Read More
Ministry of aviation tells SpiceJet and prospective investors to present funding plan to get relief New Delhi: The civil aviation ministry has asked Ajay Singh, the Spice-Jet management and prospective investors such as JPMorgan to present a detaile… Read More
SpiceJet to present investment and cash flow details next week The civil aviation ministry on Friday asked SpiceJet to give in writing a proposal detailing recapitalisation plans for the airline along with specif… Read More
0 comments:
Post a Comment