What govt needs to do to boost low-cost carriers in India

India's domestic aviation market is predominantly a low cost carrier (LCC) market, with more than 70 percent market share controlled by the LCCs. Even Full-service carriers (FSC) like Jet Airways  and Air India are at times forced to offer economy class seats at a fare comparable with LCCs despite providing additional facilities like meals, lounge access and frequent flyer benefits etc. A significant number of aircrafts of Jet Airways have a full economy class configuration. India is, now, by all means an LCC territory. The market leader, IndiGo, followed a consistent strategy of on-time performance, new fleet, competitive fares and hassle free service. The exit of Kingfisher in December 2012 helped and Indigo today has a dominant market share of over 30 percent.  It recorded an impressive profit of Rs 787 crore in 2012-13 compared to Rs 128 crore in 2011-12. With FDI reforms, enhancement of of bilateral quotas and the anticipated abolition of the infamous 5/20 rule, we are seeing more foreign airlines entering the Indian aviation space.  The increasing competition is likely to enhance global connectivity, improve services, bring down fares, attract more flyers in India and boost foreign tourist arrivals.
Read news in full 25/10/13 moneycontrol.com