Take a look at how low-cost carriers are bringing a significant revolution in the economic growth of Tier-II cities by making them more accessible and affordable.
When Dubai’s first low-cost carrier, FlyDubai announced that its maiden flight from India to Dubai would be from Lucknow, many, including the aviation industry leaders, were surprised. Wouldn’t it make more sense economically for the airline to fly from a metro, for instance, Delhi, Mumbai or Chennai?
However, this proved to be an excellent business strategy and emerged as a win-win situation for all those involved – the low-cost carriers (LCC), Tier-II cities, and the passengers. In fact, today many of the low-cost carriers, including both domestic and international players, are focussing on Tier-II cities.
Let’s take a look at how the relationship between Low-Cost Carriers and Tier-II cities is changing the Civil Aviation Game Big Time!
Tourism made Affordable
Gone were the days when people from Tier-II cities had to rely on trains or buses to visit the metros and other tourist spots. With the entry of Low-cost carriers who offer cheap domestic flights, travel and tourism, flying is now affordable to the middle-class people with modest incomes.
In fact, the cost of a flight ticket from a Tier-II city to a major Hub is quite close to that of a second-AC train ticket for the same route.
With economic growth at the Big Six – New Delhi, Mumbai, Chennai, Bangalore, Hyderabad, and Kolkata reaching saturation levels, companies across all the industries are looking at Tier-II cities to expand their operations.
Some of the major advantages of these cities include easy availability of a skilled workforce and lower real-estate prices. But, until recently, these Tier-II towns like Indore, Kochi, Madurai, Trichy, Pune, Jaipur, Lucknow, Amritsar, and others had a huge drawback – they weren’t easily accessible.
However, with the entry of low-cost carriers in the market, Tier-II cities were able to overcome this significant hurdle. With improved air-connectivity, it’s now possible for company heads and other businessmen to quickly travel to and from Tier-II cities. This has led to the rapid growth of industries in Tier-II cities.
The Rest of India is now Easily Accessible to Foreign Tourists
A decade ago, foreign tourists travelling to India restricted their exploration to just the major metros. They weren’t able to go to other parts of the country due to poor rail and road connectivity. With the entry of low-cost carriers and the opening of tier-II city airports, now tourists can easily visit other parts of the country.
Today, a foreign tourist can easily hop on a Delhi to Indore flight or a Chennai to Madurai flight to explore true India beyond the metros. The massive growth in popularity of places like Jaipur, Udaipur, Kochi, and Madurai among foreign tourists is a result of the strong air-connectivity to these cities, all thanks to low-cost airlines which operate from there.
There’s no denying the fact that LLCs have made Tier-II cities more accessible than ever before. With the opening of new airports and increased air-connectivity, Tier-II cities are witnessing a massive growth economically.