Veteran investor Rakesh Jhunjhunwala, popularly known as Big Bull, is going to start an ultra low-cost carrier in the country. It has been named Akasa Airline. GoAir is also poised to become an ultra low cost carrier. Tickets are cheaper in ultra low cost carriers but facilities have to be paid separately. Every inch of space is important in an ultra low cost carrier. Luggage bins, foldable seat back trays, paper cups, food packaging are all advertised. There is a separate charge for each service.
What is Ultra Low Cost Airline Rakesh Jhunjhunwala
A low cost carrier is a ‘No Frills Airlines’. That is such an airline, in which only essential facilities are provided to the passengers. Because of this, the journey is cheap (Cheap Ticket). In order to make air travel affordable for passengers, non-essential amenities such as in-flight entertainment, in-flight meals, and business class seating are spared. For example, the ticket for Wow Air from Delhi to America was 15 thousand rupees. But the rest of the facilities had to be spent separately. But later this airline closed down.
Low Cost Carrier vs Ultra Low Cost Carrier (LCC vs ULCC)
The cost in the ULCC business model is lower than in the traditional LCC. Earlier in May, GoAir had also announced to rebrand itself as GoFirst and change its business model from LCC to ULCC.
The definition of LCC and ULCC is not clear in India as in Europe and America. For example in Germany ULCC never goes to major airports like Frankfurt. Instead, they fly from Frankfurt-Hahn Airport which is 70 km away. This results in huge savings in their cost. But there is no such concept in India.
ULCC going to change the aviation sector of India
Due to the Corona pandemic, Full Service and Low Cost Carriers (LCCs) in the country are struggling to survive. The demand for air travel is decreasing. In such a situation, the formation of ULCC is an indication that the business model and the domestic aviation market are changing.
Unlike LCC, services like baggage or food are not included in the ticket price in ULCC. Irish airline Ryanair in Europe and Spirit in America are examples. The purpose of ULCC is to take passengers to their destinations at the least cost.
Who started LCC in India Rakesh Jhunjhunwala
Once upon a time, traveling by air was no less than a dream for the common people. But the captain and businessman GR Gopinath (G.R. Gopinath) started giving flight to his dreams. He started Air Deccan in the year 2003.
After 18 years, today the market share of low cost carriers in the country is more than 80 percent which is possibly the highest in the world. The closure of Kingfisher Airlines and Jet Airways and Air India getting stuck in trouble gave a boost to cheap fare airlines in the country.
What happened to the Deccan airlines
Air Deccan It was India’s first low cost airline, popularly known as a common man’s airline. Air Deccan’s air ticket prices were almost half that of other companies.
In 2007, Captain Gopinath sold Air Deccan to Kingfisher, the company of liquor baron Vijay Mallya. Mallya renamed Air Deccan as Kingfisher Red. Later this airline closed down in 2011.