Global carriers start low-fare play in local skies

Mumbai: Even as Indian carriers go slow on their international plans, international carriers are swooping in to corner market share with low fares.
Malaysian low-cost carrier AirAsia is giving away tickets on its new flight between Tiruchirappalli and Kuala Lumpur at Rs 699 one way.
Last week, British Airways had announced a similar marketing scheme through which tickets on its Hyderabad-London sector were sold for Rs 90. Connection to North America started at Rs 990.
The fares indicated are just the basic fares and exclude the substantial taxes and surcharges. But, they do add to consumer excitement in the category nevertheless.
Clearly, for Air Asia and British Airways, the game is one of stimulating passenger demand through these fares so that the capacity they are adding in these times of crisis is justified.
The fare war may have has just started. In the next few months, the Malaysian private carrier is looking at Chennai, Cochin, Kolkata, Bangalore and Hyderabad for AirAsia, and at New Delhi and Mumbai for AirAsia X.
08/11/08 Nirmal John/Daily News & Analysis

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Categories: Foreign Nov 2008, Indian Aviation- In General Nov 2008, Low Cost General Nov 2008