Tuesday, June 14, 2011

IndiGo’s overseas entry may trigger fare war

New Delhi: Budget airline IndiGo, run by InterGlobe Aviation Pvt. Ltd, will launch its international operations in September with highly competitive ticket prices that could trigger a fare war on the South-East Asian and West Asian routes.
IndiGo, the country’s third largest carrier by passengers with 240 aircraft on order, will offer 25,000 tickets at Rs.9,999 each for flights to Singapore, Bangkok and Dubai in a bid to woo passengers, said IndiGo president Aditya Ghosh.
“It’s not a small-time marketing gimmick. Even in Diwali and Dussehra you can fly to holiday destinations at these fares,” he said. Typically, fares get higher closer to the date of booking.
IndiGo’s first international flight on 1 September will be Delhi-Dubai, which will be followed by Delhi-Bangkok, Delhi-Singapore, Mumbai-Dubai and Mumbai-Bangkok.
Fares may crash 20-25% due to IndiGo’s entry into the international market, said Keyur Joshi, co-founder and chief operating officer of travel portal MakeMyTrip.
15/06/11 Tarun Shukla/Live Mint
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