Airline Operating Costs


This has been a topic of discussion and will continue to be one this fiscal year as the Indian Aviation Industry is forecasted to run into losses in the tunes of thousands of crores. (I will lose track of the number of zeros while counting the same!!)

And some low-cost airlines may even go into extinction if they don’t raise their fares. Once they raise their air fares, then which one is the premium airlines and which one is the budget. This was my dilemma when I started a scout for fares while booking tickets online 2 weeks backs. There was just 750 bucks difference between a premium airline’s lowest fare and a budget airline’s fare. The tax itself was a whopping 3500+!!

Now, how can the airlines help it? This is direct result of the aviation fuel prices. There’s nothing the airlines can do reduce their operating costs. I was reading a few articles in the daily newspapers recently which talked about reducing operating costs for the Indian aviation counterparts across the seven seas by doing obscure stuff like using disposable cutlery, reducing the amount of water bottles carried on flight, reducing the amount of reading material carried, changing the material of the upholstery and chairs. Interesting stuff but made some sense when you thought about it from a scientific point of view. The science of weight to force ratio. More the weight, more is the force required, more is the acceleration required and more the fuel.

Hopefully, our Indian aviation experts read the same articles too!! May be they have even started implementing some of the practices by borrowing the ideas of the West. We should have learnt the art of borrowing ideas pretty well by now. Bollywood makes a profession out of this art!!

If the same trend of air fare increase continues, we will be back in an era (a decade ago) when air travel was a complete luxury and the common Indian had a penchant for the Indian railways. Do I see a hint of a wicked smile on our Railway Minister’s face??

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Posted on August 28, 2008, in Travel. Bookmark the permalink. Leave a comment.

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