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Crazy4Planes
Topic Author
Posts: 95
Joined: Tue Oct 06, 2015 12:05 pm

Long Haul Low Cost Carrier In India

Tue Mar 08, 2016 10:31 am

Why is there no long haul low cost carrier based in India? Will it be viable? We have AI and 9W flying on long haul routes but they are full service airlines. Will someone launch such airline in India?

Your advice.
 
LGAviation
Posts: 870
Joined: Thu Jul 30, 2015 10:14 am

RE: Long Haul Low Cost Carrier In India

Tue Mar 08, 2016 11:05 am

Aviation regulation in India is still tight and it's not that easy to open a Longhaul LCC in India, also as the legacy carriers are struggling, I wonder if the government would be that supportive of an effort to compete with those. Another major factor would obviously have to be the ME3 that offer smooth connections to a multitude of places at reasonable fares. And which routes would you want that LCC to operate on? SE Asia isn't longhaul, Europe isn't a market that would attract Indian LCC passengers in sufficient numbers and to cater to the US and Canadian diaspora would mean that one would have to beat the ME3 at their game which isn't that easy for a start-up
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tayaramecanici
Posts: 255
Joined: Sat Sep 09, 2006 5:03 am

RE: Long Haul Low Cost Carrier In India

Wed Mar 09, 2016 9:59 am

There is a strong opportunity at the moment, to start a Long-haul LCC based in UK with a focus on the Indian sub-continent.

A/ UK-India bilaterals allow for unlimited access from UK except-LHR to any city in India other than the big 4 Metros.
B/ New Technology i.e. A350, B787, B77W are putting pressure on re-sale values of classics like A330, B767 and B772. This offers adequate capacity and range for this sector at reasonable rates.
C/ Oil expected to hand around $40/bl.
D/ The diaspora from Indian sub-continent spread across, India, Pak, Bangladesh, US-EAST Coast, Canada and Caribbean islands.
E/ ME3 have created a very large pax base in the sub-continent. This pax catchment is very thrifty and will experiment with LH-LCC at the right price. Its a term called Disintermediation in aviation, has happened in cargo biz where freight forwarders start their own airlines removing the intermediate airline. IMO its NOT a matter of IF but WHEN will disintermediation happen on the India-EU airline biz, bypassing the ME3.

The above factors offer excellent opportunities for an UK based LCC to operate from STN or BHX as a scissor hub connecting AMD, ATQ, HYD, PNQ, KHI, ISB, DAC with NYJ, ATL, ANU.

There are significant number of 2nd and 3rd Gen Brit-Asian families living on either side of the pond with ties to same village in the sub-continent. It will serve VFR travellers and backpackers, if packaged right.

[Edited 2016-03-09 02:04:21]
''You are as good as your nearest competitor'' Bob Crandall.
 
mandala499
Posts: 6593
Joined: Wed Aug 29, 2001 8:47 pm

RE: Long Haul Low Cost Carrier In India

Wed Mar 09, 2016 11:09 am

Quoting tayaramecanici (Reply 2):
There is a strong opportunity at the moment, to start a Long-haul LCC based in UK with a focus on the Indian sub-continent.

Try and tell that to the UK long-haul charter ops...   I'm surprised they haven't launched one to India from say, Manchester and LGW...

Quoting LGAviation (Reply 1):
And which routes would you want that LCC to operate on? SE Asia isn't longhaul, Europe isn't a market that would attract Indian LCC passengers in sufficient numbers and to cater to the US and Canadian diaspora would mean that one would have to beat the ME3 at their game which isn't that easy for a start-up

The main problem for India is that, a startup MUST fly domestic only for a few years before it can open up international routes... And it's not just 1 - 2 years... I think it's an 11 year wait or something that ridiculous... someone else here would have the right number...
When losing situational awareness, pray Cumulus Granitus isn't nearby !
 
User avatar
PatrickZ80
Posts: 4238
Joined: Tue Jul 13, 2010 5:33 am

RE: Long Haul Low Cost Carrier In India

Wed Mar 09, 2016 9:29 pm

Quoting mandala499 (Reply 3):
Try and tell that to the UK long-haul charter ops... I'm surprised they haven't launched one to India from say, Manchester and LGW...

Actually there is one. MT is flying MAN-GOI and LGW-GOI.

There may not be a long-haul LCC carrier based in India, but there are some foreign carriers flying to India wich is just as good.
 
golfradio
Posts: 920
Joined: Mon Jun 15, 2009 5:35 pm

RE: Long Haul Low Cost Carrier In India

Thu Mar 10, 2016 2:24 pm

Quoting mandala499 (Reply 3):
The main problem for India is that, a startup MUST fly domestic only for a few years before it can open up international routes

It's the 5/20 rule ... 5 years of continous domestics ops with min fleet of 20 aircraft. Lobbied and bought by 9W to block other upstarts and protect their long haul ops.

The irony is now the old protestors are now lobbying to keep the rule in place to block Air Asia India and Vistara.
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