| Are other low cost airlines of India, in trouble? |
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 With the deal of Kingfisher-Air Deccan taking place, the smaller low cost airlines are going to face the heat. If we look carefully into the merging of Jet-Sahara,Kingfisher-Air Deccan and Air India-Indian airlines, the combination of these airlines together produces net market share of 85%. This way the smaller airline may be in trouble, like SpiceJet, IndiGo, and Go Air.“It is better to have a well-funded competitor than a cash-strapped rival who is likely to make irrational moves,” said Siddhanta Sharma, CEO, SpiceJet. Even the IndiGo President said "“This may lead to modest improvement in yields as airlines focus more on profitability than market share." The deal of Kingfisher-Air Deccan on the other hand is having no effect over the other low cost airlines, that is, this deal would may give way to some degree of route rationalisation, specially the route which connects metropolitan cities. That means other carriers will have chance to improve their market share. Go Air CEO was saying that their expansion plans are on track to have a fleet of 35 aircraft by 2011. So this means they will have no impact from this deal of Kingfisher-Air Deccan. But further on, another low cost carrier called Paramount is having no effect over this deal as well as per the sources. Interestingly Mr Thiagarajan who is the CEO of Paramout airways said that “We are the market leader in the South with 26% share, ahead of Jet, Kingfisher or Air Deccan,”. That is thier airlines product offerings does not compete with that of Air Deccan. To know more about---> Flights News.
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