AirAsia India launches with US$17 fares

by ORIENT AVIATION 

July 1st 2014

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The launch of AirAsia India last month produced a predicted fare war after the airline announced a US$17 promotional fare for flights from India’s Silicon Valley city, Bangalore, and the west coast’s Goa. Read More » The ticket is cheaper, and several hours shorter, than a second class fare for the journey. No frills airlines hold almost 65% of the sub-continent’s domestic airline market with only one carrier, IndiGo, making money. AirAsia India, which commenced operations with one A320, intends to increase its fleet to 10 aircraft, flying to 10 Indian cities by mid -2015.

Separately, four Indian carriers, Go Air, IndiGo, Jet Airways and SpiceJet have had their formal objection to the setting up of the Tata/ Singapore Airlines (SIA) joint venture airline rejected by the country’s director general of civil aviation. The airlines said the new rule that allowed foreign companies to invest up 49% in Indian airlines was meant only for existing carriers. The new Indian government also has decided, in principle, to scrap a rule that required airlines to operate either for five years or have a fleet of 20 airliners before they could commence international services. The CEO of the US$100 million Tata/Singapore Airlines (SIA) joint venture carrier, which is expected to launch by December with five A320s, is SIA’s Phee Teik Yeoh.