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When nations steal growth from one another… Put expensive assets created to use... More tributes to GR China invests in India Five star activism stalls development activity TIAM turns a full cycle Naidu’s return augurs well for Seemandhra L&T- the specialty of special purpose vehicles Roaring Ro-Ro facility Revving up the manufacturing sector Gas is the way forward Modi storms Silicon Valley Convulsions in The Hindu Revive development banks... Padma Bhushan for A Ramakrishna Noble nonagenarians... Return to king coal for urea... He saved millions from starvation... IPL type auction for VCs? Kinetic Karnataka The star of Spencers is no more Banning booze... Intellectual of rare qualities Fall in crude prices help in oil sector reform Fortune for Indian Airlines Engineering seats go abegging Recognition to role of NBFCs.... Welcome changes that testify to Jayalalithaa’s return to health Demise of a media baron... Kudos to NDTV... 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Airlines in India: cost and space

The budget airline promoted by the Tatas in collaboration with AirAsia started its operations in the southern region in June 2014.   Now the airline is gearing up to expand its services from other metros. It has announced plans to introduce a number of services from Delhi and Mumbai.

When Capt G R Gopinath launched Deccan Airways as a no-frills airline, he helped expand massively the number of air travellers. Though Air Deccan folded up, IndiGo and Spicejet have emerged as significant players with the former as a leader in the civil aviation segment and even earning handsome surpluses.

The success was built on the induction of a large number of new jets, effective utilisation of the fleet by quick turnaround, cutting down on frills and quality management.

On the lines of the global experience, airlines have been progressively cutting down on the quantum and quality of services. The first casualty was meals and snacks on board, which was quickly followed by reduction in the quantum of free baggage. In international travel, for instance, for years two baggages were allowed, each with 32 kg. It has got reduced to one baggage with 23 kg.  

Most airlines in the US had dispensed even with this, charging even for a single baggage. The Director General of Civil Aviation (DGCA) has been directing airlines to offer a minimum of one baggage limited to 15 kg. But even this seems to be in fo charge.

AirAsia has submitted that this should be dispensed and only a hand baggage be allowed against the earlier submission to charge Rs 199 up to 15 kg for pre-booked baggage and Rs 300 for those checking in at the airport. AirAsia is reported to have offered to lower its base fare by 5-7 per cent or a minimum Rs 150 per ticket if DGCA agreed to the airlines’ suggestion to eliminate free check-in baggage. Times of India reports that last year DGCA toyed with the idea of allowing airlines to offer discount to passengers travelling without check-in baggage.

For long airlines complained of the high prices of fuel. The steep fall in fuel prices during 2014-15 has silenced these on this score. But one witnesses the excuse for offering  a corresponding fall in fares with the usual explanation, that other costs have increased! A refrain of all businesses.

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