Around 55 per cent of all seats in India market are offered by low cost carriers

The growth of the LCC market for India has been significant, according to a recent ‘Project Rupee Raftaar’ report by the Ministry of Civil Aviation. Around 55 per cent of all seats in the market are offered by low cost carriers (LCC). Focusing on the domestic market alone, the LCC share of total seats is almost 70 per cent. While the share of LCC seats offered on India’s international routes is much smaller, at just under 25 per cent, this share has risen from essentially zero in 2004. Arguably, the emergence of LCCs has facilitated the democratization of air travel and fueled aviation growth, albeit in various ways across different markets. In emerging markets, LCCs have broadened the market and allowed more people the opportunity to fly for the very first time. In more mature markets, LCCs have deepened the market allowing people to fly more often.