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Low cost, but high on satisfaction
The downturn has helped them soar higher. While the global economic meltdown grounded many a business venture, it also forced corporate executives to fasten their seat belts aboard low-cost carriers (LCCs), report Lalatendu Mishra and Samiran Saha.
The downturn has helped them soar higher. While the global economic meltdown grounded many a business venture, it also forced corporate executives to fasten their seat belts aboard low-cost carriers (LCCs).
With the trio of Indigo, Spice and GoAir going strong and market leaders Kingfisher and Jet also launching budget options, the market is growing.
In November 2009, Indigo carried 5.5 lakh passengers. It was closely
followed by Spice Jet, which carried 4.7 lakh passengers and Go Air that clocked 2.06 lakh flyers.
This is apart from Kingfisher and Jet’s low-cost offerings, which do not reveal their share of the budget pie.
Not only do low-cost airlines work well in a value-conscious market, they’ve won new converts riding on their on-time performance and improved service standards.
In a value-conscious economy such as India, no other business model works better than low-cost.
“I recently flew Indigo from Mumbai to Delhi. What I remember is the new aircraft, ample legroom and on-time arrival. The ticket was priced far lower than the full-service carrier that I took last month,” said Noida-based entrepreneur Paresh Bararia, managing director of the Molsieve Designs.
Their service may not match up to their full-service counterparts, but LCCs have generated immense satisfaction in the minds of travellers, as the fares don’t burn a hole in the pocket.
“The flyers want everything from good seats, delicious food, beautiful airhostesses, great service and giveaways. But when it comes to paying, they would choose a SpiceJet for its fares,” said aviation analyst Mohan Kumar, former CFO of Air Deccan, explaining the rise in popularity of low-cost carriers.
“Low-cost does not mean low on service. We offer good value for money. We are courteous and efficient. People prefer us owing to the hygiene factor which helps our perception as safe, reliable and punctual,” said Spice Jet Chief Executive Officer Sanjay Aggrawal.
Low-cost airlines have capitalised on the fare differences with full service airlines. “Our service is the same. The only difference with full-price carriers is the meals. But the price differential is more than Rs 1,000. Flyers don’t want to shell out that much more for a Rs-150 meal,” said Aggrawal.
Affirmed Anil K.G, an executive with logistics firm Transworld International: “We travelled Delhi-Goa and back
on Go Air. What impressed me was
the on-time performance. Despite being a low-cost-carrier, the service was good.”
In the Hindustan Times-MARS consumer-satisfaction survey, out of five no-frill airlines, independent operators— Go air, Indigo and Spice — registered higher satisfaction ratings than Kingfisher Red and Jet Lite.
