New Delhi: While low-cost carriers (LCCs) have grown aggressively to take nearly two-thirds of air traffic in India over the past five years, these have also been rather cautious in expanding abroad.
However, with the local market continuing to be challenging and consultation on for removing the limitations on being eligible to ply abroad, this could change. An airline needs at least five years of plying at home and 20 aircraft before applying to fly abroad, the '5/20 rule'. International operations contribute only 11 per cent and 12 per cent SpiceJet's and IndiGo's revenues, respectively. The former is now looking at charting routes to offbeat destinations abroad.
IndiGo is not. Said a senior executive, "It is a conscious decision to go slow on international operations. The domestic market is crying for capacity. The number of domestic air passengers is projected to go up from 62-65 million to 110 mn over 36-40 months. It is only a matter of how many people come in at the right cost to grab that opportunity."
Read News In full 31/12/13 Sharmistha Mukherjee/Business Standard
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