`Cheap fare game` not sustainable: Kingfisher Airlines

Mumbai: Kingfisher Airlines has said it will never enter the low cost-no frill segment as it defies all economics and makes no sense to run a service below cost.
"We are in business to make profit and not losses and hence Kingfisher is totally against this model as it feared that a low cost budget carrier will not survive on a sustainable basis.
"Low cost airlines are cutting into their own pockets and will not be able to survive. Their pricing strategy is faulty," Kingfisher Airlines general manager (sales) Manoj Chacko told a news agency.
According to him low-cost airlines should not operate in peak routes, which costs an airline around Rs three lakh plus in a Mumbai-Delhi sector carrying a up to 180 passengers.
This works out to around Rs 2,300 per seat, Chacko said adding any ticket priced below the cost will lead to losses.
25/02/07 Zee News

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Categories: kingfisher feb 2007, low-cost gl news feb 2007