Coming soon: No-frills airports

Bangalore: India’s bleeding no-frills airlines may finally have something to look forward to: airports that charge them lower fees so that their business model has a better chance of succeeding.
Consortia working on revamping and modernising airports at the two metros - Delhi and Mumbai, which between them handle 60% of the country’s air passengers - are planning to include low-cost terminals in their master plans, which should be ready by October.
While the GMR-Fraport consortium is looking at converting the existing two terminals at Delhi airport into no-frills terminals after the new airport is ready by 2010, the GVK-Airport Company of South Africa is considering the option in Mumbai, but space constraints seem to be coming in the way.
At present, budget carriers like Air Deccan and SpiceJet are competing with full-service airlines like Jet and Indian on fares with very little cost differential, which is making them bleed profusely.
A low-cost terminal will give them a chance to become profitable.
27/09/06 Praveena Sharma/Daily News & Analysis

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