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16-Nov-2011 2:12 PM

Kingfisher notes the 'bloodbath' at the bottom end of the market

Kingfisher Airlines Chairman Vijay Mallya stated the decision to phase out Kingfisher Red was a strategic one as the earnings from the LCC segment had been lower than its full-service peer (Business Standard/Economic Times/Bloomberg/ANI, 15-Nov-2011). "With capacity addition taking place in the low-fare market, we believe the bloodbath will be at the bottom end," Dr Mallya said. Kingfisher CEO Sanjay Aggarawal similarly noted: "Low cost service is not a viable model in India and there could be a blood bath happening in the low-cost business." He added that the company has not provided Jet Airways with an advantage through its Kingfisher Red closure.

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