New Delhi: Domestic air fares might fall with the new airline venture of Tata Sons and Singapore Airlines (SIA).
These fares had risen 20-25 per cent after the exit of Vijay Mallya's Kingfisher Airlines last October. At its peak, Kingfisher had nearly 30 per cent of overall capacity in the market.
With the launch of Tata AirAsia and Tata-SIA, the added capacity will bring down fares considerably, say observers.
Sharat Dhall, president, Yatra.com, said: "The aviation market in India is under-penetrated and has tremendous potential for growth. Additional capacity will help link more cities and add seats on existing routes. With capacity addition, there would be some rationalisation of fares, which would make air travel more affordable for the common man."
21/09/13 Sharmistha Mukherjee/Business Standard
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These fares had risen 20-25 per cent after the exit of Vijay Mallya's Kingfisher Airlines last October. At its peak, Kingfisher had nearly 30 per cent of overall capacity in the market.
With the launch of Tata AirAsia and Tata-SIA, the added capacity will bring down fares considerably, say observers.
Sharat Dhall, president, Yatra.com, said: "The aviation market in India is under-penetrated and has tremendous potential for growth. Additional capacity will help link more cities and add seats on existing routes. With capacity addition, there would be some rationalisation of fares, which would make air travel more affordable for the common man."
21/09/13 Sharmistha Mukherjee/Business Standard
