Kingfisher is the new LCC: Not By Choice

The world is full of ironies and the Indian civil aviation has some of its own as well. Not long ago, Indigo Airlines made foray into the Indian aviation sector as an LCC, a low cost carrier, whose basic motive was to provide the cheap domestic air tickets to the people. At the same time, the full service airliner, Kingfisher, was providing the value based services to the people. Kingfisher was rated as a five star airliner by Skytrax in its heydays. Within a matter of few years, the situation has changed completely. Kingfisher is facing huge financial problems with surmounting debts whereas Indigo has emerged as the top market share holder. People prefer to fly Indigo due to its punctuality, low rates of flight booking and efficient services.

The recent reports pertaining to the month of July suggest that Indigo Airlines has charged one of the highest fares in the domestic sector along with Jet Airways though it was supposed to be the cheap tickets provider LCC. At the same time, Kingfisher Airlines, which was supposed to be the full service carrier and provide flight booking services at higher prices, has, on the contrary, provided the cheapest tickets in the month of July. Despite the offer of the cheap domestic air tickets, people have preferred to fly with the Indigo due to better track record of on-time performance.

This clearly established the fact the passengers value the element of punctuality more than the offer of cheap tickets and are quite okay with the limited services which they get on the LCC. This also puts on notice some other full service carriers who are not having a good on-time record. Further, this has also allowed Indigo to bank upon its reputation to do some good yield management, taking advantage of the weaning competition.

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