Indianomics!

Budget airlines are now introducing new flight service and schemes to either expand the aviation pie or wean away passengers from other players.

Almost all the no-frills airlines are going all the way to woo fliers with service offering that leaves little difference between full service carriers such as Jet Airways Kingfisher airlines, Air lines and Paramount Airways. SpiceJet Ltd had started offering tea and coffee about a month ago, will now be serving breakfast onboard its aircraft. The airline has also done away with the charge of Rs 500 on unaccompanied child and extra baggage fee for overseas travellers that have connecting international flight within 24 hours.

The trend that started off when Kingfisher Red started offering snacks fliers.

Kingfisher gets a breather for a little time.

It was a call they had to take. Its not clear from what I read in the press when they are going to repay the dues. But Kingfisher can now add fuel to its aircrafts by using the Cash and Carry format.

Cash and Carry format is as same as what we do in our daily lives. We go to a super market with a Debit or Credit card, pay the money for what we have got and go home. Similarly, Kingfisher would pay the OMCs (Oil Marketing Companies)  the amount for the fuel purchased on the spot. No Credit.

This move is a time saver for Vijay Mallay to get more time to arrange for the much needed cash for his struggling airline.

Vijay Mallya owned Kingfisher is in trouble. Ever since the merged entity has been active, its trouble time for the flamboyant business man. This time giving him trouble are the state owned oil cos. They have given a dead line of Feb 4 to clear all out standing dues owed by it to there entities failing which the fuel supplies would be stopped.

Though the notice also has been sent to Jet Airways, they have prompty reverted with some commitment. While Kingfisher has not done so.

The monthly bill for there carriers can be around some hundreds of crores.

Due to cost cutting measures, a major chunk of corporates have stopped offering travelling conveyance of its employees on Airlines. They are turning to cheaper alternatives like trains and buses. The most luxurious travel its employees get is on the lowest cost carriers and this is where Kingfisher and Jet have been hit hard.

Luxury always commands premium and these airlines make most of its lost revenue on economy sector.

Hope this is not a down turn for already bleeding Aviation industry.