India needs a host of low-cost carriers, like in other countries, to enable more people to fly, global consulting firm A T Kearney said on Friday.
Enterprising entrepreneurs should come forward and start low cost or "no-frills" carriers with active support from state governments like low sales tax on aviation turbine fuel, D Ravindran, head, transportation practice for Southeast Asia, A T Kearney, told PTI in New Delhi.
"The time is now ripe for low-cost carriers to truly proliferate into the Indian market. For this, entrepreneurs must come forward and state governments should facilitate this," Ravindran said.
Starting a low-cost airline requires initial capital of about $20 million for purchasing 4-5 jet or turbo-prop aircraft, having 40-50 seating capacity, he said.
"We are ready to arrange venture capital funding for the entrepreneurs, if required. What is needed is that local Indian industrialists or entrepreneurs should start a low-cost carrier and run a small, tight operation," Ravindran said.
He said low-cost carriers like Ryanair, Easy Jet, Virgin Express, Air Asia and Southwest have survived uncontrollable factors like slowdown in the global economy, terror attacks, war and regional conflicts and labour disputes unlike the full-cost carriers.