The Low Cost Carrier – A Worldwide Phenomenon?!

India, which in 2011 celebrated 100 years since its first flight, was a late entrant to the world of low-cost carriers (LCCs). LCCs continue to dominate the ongoing growth in the Indian skies. Yet their trajectory will be defined by the events of 2012. CAPA anticipates that it will be as challenging a year as 2004, when growth was about to peak. Indian aviation entered 2012 facing its most critical challenges since the advent of the 2004 industry reforms. India does not have low-cost airports or secondary airports that would allow LCCs to use them for a lower fee, while main city centre airports charge premium fees for full-service carriers (FSCs). This means the costs of airport usage are the same for the LCCs and FSCs. Government policy on bilateral international flying rights, which LCCs desperately need now, also became controlled in 2011 after a wave of liberalization in the years from 2003-2010.