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attitudetravel
Joined: 15 Nov 2007
Posts: 397
Location: London, UK
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 Posted: Sat Oct 25, 2008 3:59 pm Post subject: GoAir may abandon no-frills model |
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One of India's highest profile low cost airlines, the Mumbai-based airline GoAir is revising its strategy and may go so far as to abandon the no-frills model, reports PR Sanjai for Mint:
| Quote: | Until now, GoAir has been a no-frills, low-fare carrier that sells light refreshments on board.
With the proposed change, GoAir will add some services similar to a full-service airline such as Jet Airways (India) Ltd and Kingfisher Airlines Ltd that would include seat selection, multiple insurance facilities, an expanded selection of food on offer, return check-in facilities, and tele check-in. An announcement of this change in the business model is expected in a month’s time.
GoAir chief executive officer Edgardo Badiali declined details, only saying that his airline “is planning to restart (the style of operations) to create value for money while being a point-to-point carrier, and passengers will have to pay to get more.”
Badiali told Mint that his airline will continue to have a low-cost structure but offer more services and products on board, on ground and during reservation. |
Source: GoAir looks to fill gap between no frills and full service carriers |
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attitudetravel
Joined: 15 Nov 2007
Posts: 397
Location: London, UK
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| Posted: Sat Oct 25, 2008 4:06 pm Post subject: |
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Reading this article I'm not convinced that anything here suggests that GoAir may be seeking to abandon the no-frills model.
The important thing is only that any additional "services and products" are not compulsorily included and charged for (regardless of whether the passenger wants them or not).
Offering add-on, paid-for services is all part of the tried-and-tested a la carte model: pay for each additional comfort as you want it - or alternatively, don't pay for any and fly "no-frills".
Amongst European no-frills carriers, I'd say that trying to tempt the traveller with additional (but optional) pay-for services is pretty standard practice now. |
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attitudetravel
Joined: 15 Nov 2007
Posts: 397
Location: London, UK
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| Posted: Sat Oct 25, 2008 4:19 pm Post subject: |
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| Alternatively, if Sanjai's speculation is correct and a newly-revamped GoAir will include and charge for extra services as part of a compulsory "more-frills flight package" then - combined with Vijay Mallya's transformation of Air Deccan into the rather more expensive Kingfisher Red - this confirms a worrying trend for people trying to cover long distances across India on limited means. |
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Konangrit
Joined: 27 Nov 2007
Posts: 137
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| Posted: Sun Oct 26, 2008 7:37 am Post subject: |
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I completely agree with your second post.
It's interesting what Tony Fernandes had to say on the subject of Indian LCCs frequently changing their business models recently:
| Quote: | What do you think went wrong for Indian low-cost carriers? Which low-cost carrier here do you think has followed the ideal model?
Indian carriers are not focused at all and there is not a single low-cost carrier in its true sense. There needs to be some discipline. In India, carriers are changing their business models frequently. For instance, Vijay Mallya started Kingfisher Airlines Ltd as a low-cost carrier and, later on, changed into a full service carrier.
For a low-cost carrier, you need to have a strong and focussed management, cost discipline and stricter focus. I still believe there is a huge market for a low-cost carrier (here), considering (India’s) one billion population.
India has 400 unused airports. There needs to be low-cost airports and low-cost terminals to support low-cost operations.
You need to have a management with a different mindset. The present management(s) do not have that kind of energy to support low-cost operations.
For example, there are very (few) pilot training schools in India. Therefore, your pilots are very costly. India has rushed (a) lot of things without planning. Aviation is a hard business, but (it is a) good (one). |
In India, there is no single low-cost carrier in its true sense |
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