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Airports to rework plans as carriers cut costs

Category :India Sub Category :National,Business
2009-08-23 00:00:00
   Views : 457

'Airlines will have to take a call. As of now, we will stick to our original plan.'

According to him, full fare airlines would start operating from terminal 3 after it's commissioned.

Airport developers at greenfield airports at Bangalore and Hyderabad too are unlikely to go ahead with separate terminals for low-cost carriers as had been planned earlier.

With the low-cost carriers paying the same charges, other, no-frill airport terminals were seen as a possible answer to help them cope with losses on account of soaring aviation fuel prices and operational costs.

According to the AAI official, low-cost terminals will not have aerobridges, baggage conveyor belts or even buses to carry passengers. Moreover, some airports may not be air-conditioned.

'But these terminals will provide connectivity across India by offering low operational charges to airlines, thus helping to keep tickets affordable,' he added.

Currently, IndiGo Airlines, SpiceJet, GoAir as well as JetLite and Kingfisher Red, the low cost arms of Jet Airways and Kingfisher Airlines, besides a few more airlines, operate as low-cost carriers.

These carriers, which charge lower fares, have improved their market shares and load factor. A few even reported profits in the last quarter.

However, bigger carriers in India have reported losses, and are mulling steps to bring down overheads. Air India, for instance, which reportedly incurred losses of over Rs.5,000 crore ($1 billion) last fiscal, is now thinking of moving out of its headquarters at Nariman Point in Mumbai and its regional office in Delhi.

(Sanjay Singh can be contacted at sanjay.singh@ians.in)




Author :Sanjay Singh



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