Low-cost air fares the new standard
G Thomas Feb 5, 07 5:28pm
I have read too much nonsense about low-cost airlines vis-à-vis the high cost variety (better than calling them ‘full-fare’) to remain silent. Initial media reports some years ago about budget fares reflected shock; how could it be done? More recently came the rationalisation of institutional resistance -there must be a catch; they are not comfortable, delays are common, there are no frills (whatever that means).

In the past year I have flown Lufthansa, Jet Airways and AirAsia. Lufthansa was by far the most uncomfortable experience. For the 13-hour flight, we economy-class passengers were packed in like sardines with leg and elbow room insufficient for a slightly-built Asian. This is not only unfair, it is unethical because health issues arise when people sit in aircrafts for hours.

It was unethical for another reason - passengers paid exorbitant fares fixed through cartel arrangements and most airlines have enjoyed decades-long joy rides on the backs of air travellers left with limited options.

These cartels are now challenged by the so-called budget carrier phenomenon. But it appears that the real story is that the real cost of flying is a lot less than trumpeted. Monopoly-MAS used to whine about the high cost of its domestic operations and consequent inability to reduce fares. Perhaps FAX is flying kites and not planes?

Technology offers another opportunity to cut cost, one that airlines were too comfortably blind to notice until recently. The Internet helps to remove the comfort zone between airline staff and travel agents that cost passengers another pretty penny.

How could a service be provided at such a reduced cost? As management gurus would say, focus on the customers. And competition nurtures competence. There is money to be made in giving travellers safety, comfort and speed without ripping them off. Jet Airways is not a low cost carrier, but as a new entrant, it sets service standards that Air India and Indian Airlines must match.

I have seen letters in the papers about AirAsia’s flight delays. In the two years I have flown with them eight times, one flight from Sandakan was delayed five hours. Bad, for sure. The last time I flew MAS the Singapore flight was delayed two hours. Any better? And what in the world is a full-fare airline doing overbooking and then off-loading passengers? Is this not questionable business ethics? First-class hotel accommodation cannot compensate for contract violation.

And what frills do high-cost carriers offer? Headphones and video? I would rather read or nap. Really, low-cost fares are not low cost. They are the standard fares that have finally arrived. The pumped-up full fares are for corporate accounts.

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