How has the emergence of “no-frills” airlines affect scheduled airlines like Gulf Air?
The low cost carrier phenomenon is very interesting. I recently attended a low cost carrier symposium in Delhi to understand more how they would affect my business. It would seem that many companies both inside and outside India see this as a viable business proposition. Clearly the sheer numbers of the Indian population are attractive – if they can be encouraged to travel by air and if the price is affordable. The low cost carrier frenzy that emerged some 6 months ago may be dulled by the massive escalation in aviation fuel prices, which naturally increase costs. It will be interesting to see how Air India succeeds with their new low cost model Air India Express. For Gulf Air and other international carriers, any inroads into the domestic market for low cost could be interesting, permitting easier access to the gateways of the international status airports and thereby feeding the international carriers more readily.
