India to become world's leading low cost airline market

Lorna Strickland

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Low cost carriers are predicted to take 70% of Indian air transport market share by 2010

Indian low cost airlines are expected to account for 70% of all air transport in India by 2010. Centre for Asia Pacific Aviation carried out the study, believing the figure will make India the world's leading low cost carrier market in terms of total market penetration.

CEO Indian subcontinent and Middle East Kapil Kaul said: "Full service carriers are on average bleeding a remarkable 1.5 percentage points of market share every month to low cost carriers. We do not expect this rate to slow in the short term, given the profile of current fleet orders. Low cost carriers could therefore control over 35% of the domestic market by the end of 2006 and pass 50% some time in 2007."

Indian duty-free tenders are expected at 10 existing Indian airport terminals, and two new developments at Hyderabad and Bangalore. Several extablished retailers have expressed interest in the contracts, which include Hyderabad, Bangalore, Goa and Chennai, while King Power Group (Hong Kong) has bid for contracts at Trivandrum and Goa. Dubai-based Flemingo International has made offers for the retail business at Chennai, Bangalore, Hyderabad, Amritsar, Goa, Trivandrum and Ahmedabad