Friday, July 19, 2013

Fliers beware! AirAsia in India may not be good for you

It is interesting that Air Deccan, the pioneer low-cost carrier, attempted something similar when it launched but was forced to roll back to the 20-kg limit following complaints, a rare example, perhaps, of first-mover disadvantage.

Now, the cartelisation of practices that emerges in every competitive market (think telecom) will force consumers to get used to this limit. Indeed, IndiGo has not seen a diminution of its market share after it cut the baggage allowance.

Soon, fliers will learn to pay for seat preferences and almost everything else and airlines will become the true-blue low-cost carriers to which Mr Fernandes was referring.

This is the trend in most service businesses globally - in banking, for instance, chequebook facilities and statements are chargeable services. So, in that sense, India?s domestic airlines can be said to be meeting global standards.

The thing about low-cost carriers in India is that they managed to be better than world standards in terms of general ambience and efficiency.

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Air Asia CEO Tony Fernandes.


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