The Hindu Business Line : Air Deccan `not worried' about entry of new players

AIR Deccan, the country's sole low-cost airline, is not unduly worried about more such players entering the market, according to Mr G.R. Gopinath, Managing Director.

"The proposed entry of more players in to the low-cost airline market in India does not worry us. In an emerging market like India, where volumes are so big, the proposed entry of new players should help enhance the market," he told Business Line.

The domestic low-cost aviation sector is likely to see a spurt in activity soon.

The UB group has already started work on launching Kingfisher Airlines by April next year, while the Wadia group is also preparing to enter the sector.

Mr Gopinath said that his airline needed to focus on two issues - keeping costs low and operating flights on time, to survive in the competitive market.

On the issue of Air Deccan flying to international destinations, he said that the immediate goal was to consolidate in the domestic market.

"In the international arena, we will not look at operating on the long-haul sectors. However, we could look at operating to the Gulf. And these flights will be at lower fares, similar to what we have in the domestic sector. But the international operations are not something we will do immediately."

Air Deccan currently has a fleet of three Airbus A-320 aircraft that are used to operate on the trunk routes. In addition, it has the smaller ATR aircraft that operate on regional routes.

The airline plans to build a fleet of 60 aircraft, including 30 Airbus and 30 ATR aircraft, in the next five years. Currently, it has a market share of about three per cent, officials said.