Low-cost carriers (LCCs) have captured a majority of the aviation market in India, but many are struggling to survive as their primary competitive advantage is largely centered on a mildly better cost structure than full service carriers. The key to unlocking greater value for both LCCs and consumers is the development of more low cost airports in India. In this article for The Hindu Business Line, Girish Shirodkar of Strategic Decisions Group discusses three major benefits that low cost airports bring to the market, including lower operational costs, greater connectivity, and more traffic to tier-II and tier-III cities. He argues that India must focus on encouraging these developments and ensure they are truly no-frills, low cost propositions. Success would not only mean greater profitability for LCCs, but would also increase economic development and boost tourism, providing better access to destinations outside of major hubs.
SDG has an experienced infrastructure consulting team that helps clients advance systemic change by evaluating the full scope of projects, from assessing capital requirements to identifying risks that may ensue along the way.