Airline consolidation may make air travel more expensive

Written By DNA Web Team | Updated:

The recent alliances between low-cost and full-fare airlines -- Jet-Sahara and Kingfisher-Air Deccan - are rescheduling of flights to improve airline profitability.

NEW DELHI: The recent alliances between low-cost and full-fare airlines -- Jet-Sahara and Kingfisher-Air Deccan - are now leading to rescheduling of flights designed to improve airline profitability.

Air Deccan's Bangalore-Hubli route -- the low-cost carrier's inaugural flight four years ago -- may be wound up soon. Reason?

Kingfisher Airlines, which bought a controlling stake in Deccan earlier this year, has proven to be more profitable on this sector.  Why maintain a loss-making route when a profitable one can do the job?

Industry experts say recent alliances between low-cost and full-fare airlines -- Jet-Sahara and Kingfisher-Air Deccan - are now leading to rescheduling of flights designed to improve airline profitability. But what this means for customers is that some of the low-cost options that they have enjoyed will no longer be available.

Executive Chairman of Deccan Aviation G R Gopinath said that a joint team from the two airlines is looking at how best to service various routes profitably, with each airline drawing on the other's strengths.

Acting CEO of JetLite Garry Kingshott said JetLite's new schedule has been developed with Jet Airways, to ensure that the two do not compete with each other. It comes into effect from September 1.