New price war in air as SpiceJet eyes Nepal

Kathmandu: A new price war is in the offing with India’s national carrier Air India and private-sector Jet Airways keeping their fingers crossed as low-cost Indian airline SpiceJet announced its plans to start flights to Kathmandu from 2010.
The Delhi-based airline, India’s second-largest low-cost airline in terms of market share, has plans to start flights from Delhi and Bangalore to Kathmandu when it completes five years in May 2010 and is eligible to get the nod from India’s aviation authorities to begin international flights.
SpiceJet’s vice-president for sales Kamal Hingorani told the media that his company will seek the approval of Nepal’s Ministry of Tourism and Civil Aviation to start the international flights from around June 2010.
Currently, Air India and Jet Airways are the most sought-after airlines for flying to Indian cities from Kathmandu, especially as some of the cities they fly to do not have any other competitor.
SpiceJet’s advent, if the airline’s plans take off, will trigger a price war among the Indian carriers.
The India-Nepal segment is expected to see two more new airlines in future.The UB group’s Kingfisher Airlines, known for its premium service, is also poised to start flights from New Delhi to Kathmandu with an additional option of Mumbai or Bangalore.
Also waiting in the wings is Nepali domestic airline Buddha Air that is planning flights to India’s Lucknow city.
13/12/09 IANS/Thaindian.com, Thailand

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Categories: Foreign Dec 2009, New Dec 2009, spicejet Dec 2009