Friday, December 14, 2007

The possible death of the Indian low cost airlines industry

With the recent hikes in airline fuel surcharge and other items, the airline tickets have once again gone beyond the point of usual affordability.

A ticket to Hyderabad from Chennai that used to cost around Rs.1200-1500 some time ago is now at a whopping Rs.2500 or so (including all kinds of taxes, surcharge, etc). The 12hr train journey in a 3 tier A/C compartment at Rs.800 or so looks much more attractive now when compared to the 1hr flight journey.

Is this the death knell of the LCC or is there a chance of things coming back to "normal" ?

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