Mumbai: To beat rising costs that have pushed air travel to a premium category and out of reach of many, the Wadia Group-promoted budget airline GoAir is falling back on strategies that were discontinued because those were ahead of times.
The airline is contemplating tossing back its red-eye flights once again, and it is in dialogue with several state governments to allow it to develop non-capital city routes with lower sales tax on the air turbine fuel (4% as opposed to 27%) and also has sought a waiver for 20 aircraft norm before an airline goes international from the government, said Jeh Wadia, managing director, GoAir.
GoAir, with a market share of 7.5% (government March passenger data), lost the tag of the smallest commercial airline to Vijay Mallya-promoted Kingfisher Airlines in March this year. It is evaluating adding a different aircraft type for smaller cities, beside its fleet of Airbus A320 narrow body type.
24/04/12 Manisha Singhal/Economic Times