http://travelvideo.tv/news/more.php?id=8039_0_1_0_M
Crisis looming in Indian low-cost carrier industry Feb 09, 06 | 7:23 am By Y. Sulaiman NEW DELHI, India (eTurboNews) -- Aviation industry watchers in India have expressed concern the low cost carrier (LCC)sector, or budget carriers, is turning into a rat race. Following take-offs by Deccan Air and Air Sahara, ten new budget independent carriers are expected to start flying within the next 24 months, with names ranging from SpiceJet,Go Air, Magic Air, Yamuna Airlines, Visa, AirOne, Inter Globe, Paramount,Indus Air and Skylark to state-owned Air India Express and Alliance Air. .. ... .. ... "Everybody is being poached," said a pilot who has just been poached by another airline. Air Sahara reported the loss of 17 pilots, resulting in grounding of two routes. The biggest worry, say industry analysts, is airport infrastructure. .. ... .. ... The upstart airlines have been attracted by the volume of traffic that India promises, and they see the sky limitless. "There is a huge potential for low cost carriers to grow. There are merely 4-5 seats in the cheapest category, but the carriers get mileage in the media and they generate business." The industry is expected to generate 10 million new jobs over the next decade."The Indian domestic market will grow to 45 million by 2010," said Kapil Kaul from the Centre for Asia Pacific Aviation (CAPA). .. ... .. ... According to Kaul, budget carriers must sell over 60 percent of their seats on all routes because their per seat fare is lower than full-service carriers. They normally have a 40-seat advantage over regular carriers which fly with two classes. He added, "To be viable, they cut costs by utilizing Internet booking, taking less turnaround time at airports**, and by having less staff per plane." >> ------------------ **A BIG hope at Dabolim, right?