Kingfisher Airlines says no to low cost model

Kingfisher Airlines has said it will never enter the low cost-no frill segment as it defies all economics and makes no sense to run a service below cost. "We are in business to make profit and not losses and hence Kingfisher is totally against this model as it feared that a low cost budget carrier will not survive on a sustainable basis. "Low cost airlines are cutting into their own pockets and will not be able to survive. Their pricing strategy is faulty," Kingfisher Airlines general manager (sales) Manoj Chacko said. According to him low-cost airlines should not operate in peak routes, which costs an airline around Rs three lakh plus in a Mumbai-Delhi sector carrying a up to 180 passengers. This works out to around Rs 2,300 per seat, Chacko said adding any ticket priced below the cost will lead to losses. "Also, what happens in a low cost carrier is people do not buy tickets costing more as then they expect add on (on-board meals, beverages etc), which are offered by other airlines. He said Kingfisher's ticket pricing starts around Rs 4,000 for Delhi-Mumbai sector and it recovers operational costs and a percentage of profit.

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