LCC LANDSCAPE IN THE INDIAN AIRLINE INDUSTRY<br />
WHY LCC MODEL IS CRITICAL FOR THE INDIAN AIRLINE INDUSTRY<br />
POLICY CHALLENGE: LACK OF SECONDARY AIRPORTS<br />Of the total of 449 airports, the AAI operates only 61 airports<br />The top five airports account for 73.5% of total air traffic in India<br />The average distance between a major airport and its nearest secondary airport is around 300 km<br />Airport Infrastructure Policy prohibits Greenfield airport 150 km nearby an existing airport<br />Kuala Lumpur International Airport was built in 2006 at an approx. cost of US$35 million<br />LCC Terminal is a simple setup with no frills -single floor area, straight individual feed, 72 check-in counters, parking bays at walking distance from the terminal<br />On a peak day, the 33,290 sqm terminal handles nearly 35,000 passengers and up to 215 flights<br />
POLICY CHALLENGE: OVERALL AIRPORT COST <br />A waiver in landing charges for all aircrafts with maximum certified capacity of 80 seats<br />
POLICY CHALLENGE: OVERALL AIRPORT COST <br />Airliner’s choice of aircraft size is a function of distance covered, level of demand, level of competition, and airport policies<br />The high load factor-determinant of airline route profitability, can be achieved through service frequency or aircraft size<br />Airliners tend to achieve the high load factor by increasing the service frequency <br />Increase in aircraft service frequency by using very small aircrafts leads to higher airport congestion and environmental impact cost<br />
OVERALL AIRPORT COST : Delhi - Mumbai Route Case-study<br />Gas Emissions Cost Analysis during LTO Phases from Daily Operation between Delhi and Mumbai Airports across Selected Aircraft Fleet <br />
OVERALL AIRPORT COST : Delhi - Mumbai Route Case-study<br />Environment Cost-saving Comparison of Narrow Body Aircraft Models with Different Seating Configurations<br />
Findings indicate that to transport the daily air traffic capacity along the studied route, the use of narrow-body aircrafts results in lesser air pollution<br />Further, in-depth analysis across narrow body aircrafts used to serve on the same route shows:<br /> - The use of very small aircrafts with increased frequency has a higher impact on local air pollution <br /> - The environmental cost of using a very small aircraft were higher of nearly close to that of using a wide body aircraft<br />Similar trends were also observed in the analysis of aircrafts during the climb-out and approach/arrival stages<br />POLICY CHALLENGE: OVERALL AIRPORT COST <br />
RECOMMENDATIONS <br />Construct LCC terminal at existing airports<br />Relax policy barrier that prohibit the construction of an airport within 150 km radius<br />Relax fee waiver cap on aircrafts with less than 80 seats/or weighing less than 21 tones for LCC<br />Launch air service to commercially non-viable routes with subsidy support<br />Remove the five-year/20 aircrafts threshold on domestic airlines for operating regional flights<br />Institutional funding for LCC entry<br />
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