Why are full service airlines struggling to launch a low cost airline / subsidiary, especially in India, where Air India and Jet Airways failed with Air India Express and Jet Lite / Sahara respectively?
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Answer:
Although am no airline industry expert. It seems to be a case of attempting to position oneself at both ends of the spectrum. The mentioned companies, believe that they can have a better utilization of the resources with a low cost carrier in their offering. However, the mechanism of operating low cost airlines is independent in itself, neither AI Express nor Sahara were true low cost airlines to begin with, so the acquisition/merger of the entities would also entail a major rethink on the part of the organization itself which was not used to working as pureplay low cost carrier. This coupled with changing industry dynamics, fuel price rise, additional surcharges on airport hit the growing consumer base.
Ankur Mehrotra at Quora Visit the source
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