Not possible to run low cost airline in India: Indigo Partners

Mumbai, June 13 (UNI) Low cost airlines in the country could turn out to be a myth.

''There is not a single airline in India that operates a true low cost structure,'' said Mr Bill Franke, managing director of leading investment firm Indigo Partners.

''Under the current conditions, it is not possible to run a low cost airline,'' he said in his keynote address at the fourth annual India and West Asia Airline Symposium organised by the Centre for Asia Pacific Aviation (CAPA).

Mr Franke said the Government must do more to provide a setting in which the model can work.

Looking at the systemic differences between Indian subcontinent and rest of the world, he said no Indian carrier has deals in place with base airports to lower costs in exchange for passenger volume.

Also, lack of skilled manpower and infrastructure precludes high rates of aircraft utilisation, both critical elements of the model in Europe and the United States.

These failings, said Mr Franke, combine with a situation where prevailing fuel taxes to push operating costs well over the low cost thresholds -- with unit costs 50 to 75 per cent higher than practitioners in rest of the world.

''The potential market is still vast, the economy remains robust and personal consumption rates are still rising. But there is still no true LCC to cater to the demand.'' Mr Franke said the Indian Government must change course and facilitate the effective running of the airline business. ''Only then will we get fares low enough to get people off the trains and into aircraft.'' UNI SU PV VV1738