Foreign Low-Cost Airlines Struggle in India

January 15th, 2011
in Background

AirAsia The Times of India:  International low-cost carriers flying into India have hit serious air pockets. NOK Air, Tiger Airways and Jetstar Asia have already faded from people's memory. Some of the few remaining players are said to be struggling to generate a decent economic return.

Follow up:

From January 11, Malaysian low-cost carrier AirAsia ceased operating out of Hyderabad and Thiruvananthapuram. Last year it scaled down its Bangalore operations from a daily flight to four flights a week. It's also withdrawing its Chennai-Penang route, on which it had a complete monopoly, and instead converting that to a Trichy-Kuala Lumpur route.

Bruising fare wars have been one reason for the exits by these carriers. But there are other equally important reasons: low load factors, poor onward connectivity and competitive holiday packages offered by full service airlines. 
Read more at The Times of India.....

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