Ad Here  
Auto components surge… Limit foreign borrowings to hi-tech, export potential projects... Naidu’s return augurs well for Seemandhra Shipping woes of Chennai companies Lesson from Chandrababu Naidu Like Hinduism: many paths to reach God... Bihar elections - the Rajaji formula worked Pharma – overdose of copying Excel Generators provide the vital back-up For whom the bell tolls? Bihar – Nitish Kumar adopts the Lalu model The Jan Dhan bonanza Towards speedy justice Kudos to NDTV... Contrarian cousins EVM is tamper-proof Paytm karo... …and of a popular trade leader The Ports’ Pasha expands into Tamil Nadu Modi and the lady Shanti and Sadhana through Music Dr C Rangarajan returns to Chennai TIAM turns a full cycle A Grand Finale for SN’s MS centenary at the US… Readers' Mail Cement prices continue to rise… Medical costs hit the roof... Shaming of Tamils by Tamil farmers at Delhi Poor quality of university VCs Colour-Chem’s colourful KRVS Kinetic Karnataka Padma Bhushan for A Ramakrishna Tribute Remembering Indira Sivasailam... CSR and CMI: promise of another Srinivasan Ramanujan... Welcome thrust on trade in Modi’s foreign visits... Roaring Ro-Ro facility IPL - no surprise this scam Welcome GST No mega rail project for Tamil Nadu When TN politicians can emulate Kerala's CII projects higher growth… Another Indian music maestro at the UN Infrastructure funding – lessons learnt Kulandai was a giant Eternal support for capitalisation of PS banks Align crops to agro climate endowments… Convulsions in The Hindu Boy, can you beat these? Shale gas and its shallow future Engineering seats go abegging The sea- saw battle continues... When Ratan Tata visited SRM Gas is the way forward Nuclear power at the nucleus West Bengal: mindless malignancy TN-leverage strength of BHEL, NLC... The brown list of Venkitaramanan A glass full of corruption Discoms deserve better… TN accounts for the largest recruits by the IT sector CRS, a jewel among managers, is no more. IPL type auction for VCs? WTO Meet: resolved to meet again Maximising the micro pricing … Make standards certification mandatory... S V Raju – a ‘good’ true liberal A professional at the helm of IRDA... The Gulf aviation boom A welcome initiative by the judiciary Tatas moving out of urea production... L&T- the specialty of special purpose vehicles Banning booze... Scientists urged to take up farmer-oriented research A proud Madrasi Polls and promises Funding the un-funded No engine for this car Tatas moving out of urea production... Measuring roof tops in terms of KW/MW Rs.1600 crore paper board plant of TNPL Don’t seem to feel the pulse… Focus on quality of power - its only around 170-180V Quality silica from Neyveli Solar, solar everywhere … Naidu will soon build a new Hyderabad Lalu’s envy, India’s pride When the President was rendered homeless… Put expensive assets created to use... Inflation: are we emulating Argentina and Brazil? A Grand Finale for SN’s MS centenary at the US… Mersal magnified This scant respect for Law A C Muthiah – his munificent bequeaths to science Music happens For whom the MIDS bell tolls? F C Kohli - his concerns all embracing GNS - 100: our first subscriber Sri Lanka votes for change PPP mode for upgrading Corporation Hospitals All eyes on Sankara Nethralaya Tihar, Puzhal not different from Parappana Agrahara L&T: focus on infrastructure and more infrastructure… The Swadeshi Trump Welcome changes that testify to Jayalalithaa’s return to health Of course, Gujarat is vibrant An enemy’s enemy is a friend More heat than light Where a state respects its litterateurs… Tribute – M V Murugappan Insurance companies bleeding, yet no decision on increasing FDI limit! A think tank for Chennai The rise and rise of KCP Poor representation for Kerala and TN in Cabinet Protest masters... Sweeter prospects for sugar Liberal imports idling indigenous capacities S Ramanathan – a versatile musician, musicologist Road development slows down Modi storms Silicon Valley New IT products of Ramco in the pipeline… to the lack of interest on the part of these to focus on original research. This despite the much lower costs of such research in India. The industry which thrived on the protection of a closed economy and the advantage of a vast domestic market, has failed to organise its evolution on healthy lines Fall in crude prices help in oil sector reform Online not in line with brick and mortar businesses... The few handicaps... Mu Sigma – is no more When small is no larger beautiful.. Rahman at CIC Making ‘my Amaravati’... Tax agriculture When nations steal growth from one another… The balancing act CIPET hqrs to stay at Guindy – for the present? An informal presentation - analytical, forward locking... Adapt Vajpayee dinner diplomacy Vibrant Gujarat TGS- The king storyteller Wise Presidents A rich pool of talent not utilised…. Noble nonagenarians... He saved millions from starvation... Should we change the official year? A more liberated TN… When online building permits work…. No Maha Koottani in TN... TELANGANA at last…BUT Not just in-laws (and outlaws); they’ve renowned academics at the helm! Land reclamation from sea appears cheaper! Valli, they are more marginalised EEC at the National Media Centre Telangana in top gear… Plummeting profits of PSBs Godspeed, Chief Minister JJ Five star activism stalls development activity Intellectual of rare qualities Alexa – Talking Wikipedia Fortune 500 review Editor's Notes Delhi is distant Secularism and anti-Hinduism B H Kothari - a tribute Demise of a media baron... A friendly business group R Sridhar steps down as CEO of Shriram Capital Gay abandon in pricing The nuclear option Revive development banks... Varuna (rain) in 2015; Vaayu (air) in 2016. Chennai devastated There was flood of milk. Reason: no milk commissioner! Chennai and Kolkata miss opportunity to grow as Delhi and Mumbai Quality education through the PPP mode London, London Narayan ONGC at KG Basin SoA @ 80 The power-full Hindujas Streamlining mandatory third party cover Parliament in paralysis... Sweet news for TN sugar mills Which side are you, Montek? He continues the focus on social amelioration Tough task taking states together Odisha: spectacular win by Naveen Patnaik Haul over the coal Robber barons everywhere Recognition to role of NBFCs.... An inexplicable neglect The why of tax incentives Fortune for Indian Airlines Welcome focus on core competence Airlines in India: cost and space Tribute – Manikam Ramaswami TN – agglomerate land holdings without alienating ownership Whistle-Stop Tour of Raghuram Rajan Small units prefers to remain small... The ‘Jayanthi Tax.’ Delhi Chalo... Why this malaise in medical education? Computation of GDP – conundrums continue Diamond jubilee of Egmore Samskrt School More Shakthi to Das’ elbow MHC should not return to its old indisciplined ways Where is Rajaji? Return to king coal for urea... Adharma of opposition politics Cutting the nose to spite the face GM Technology at last! The star of Spencers is no more Build close rapport with business leaders More tributes to GR Marketing expert Balagopal is no more Strengthen the base... Tribute – UCAL Selvan… Preserving for the future The ‘Ayyo-yes’ is no more Delhi returns to BJP Muffled voices for merit… How Air-India loses customs... IAS invades NDDB... A yen for wastage… Editor's Says Come elections, come advertisements... China invests in India Breaththrough in malaria control More Shakti to resource mobilisation... Moily’s bold thrust Things happen by accident and not by design... Building loyalty through the stomach Increasing non co-operation of state leaders Waning interest in public discussions… Reliance’s TV – 18 ready to launch Tamil News Channel Cleaning Ganga – relocate tanneries and install electric crematoria PC’s preference for professionals Revving up the manufacturing sector Delhi is distant… Air Asia India will set new benchmarks for budget travel Silver Years of Madras Musings Wanted: a second airport for Chennai Why land prices zoom in TN? Permanent secretariat for TN GIM Fuel for thought Multi-faceted Venkat Solar thermal shines… The rise and fall of Annamalai University Russi Mody – a tribute
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.

Author :
Reported On :
Sector :
Shoulder :
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
S-15, Industrial Estate,
Chennai - 600 032.
PHONE: +91 44 22501236