Aviation

Dogfight in Indian airspace begins before AirAsia launch

DELHI / MUMBAI

Competition in Indian skies is set to take off with AirAsia readying to enter the market in a couple of months with low fares and targeting the relatively untapped tier II and III city market. However, given the lead time they had — nearly 17 months from the time the carrier announced its India plan to getting the flying permit — incumbents SpiceJet, IndiGo and Jet Airways have been spreading their wings to markets where they foresee competition coming, offering discount sales of tickets to lock in passengers in advance. While fliers may rejoice, analysts worry that disruptive pricing may further affect the precarious balance sheet of the carriers, most of which are loss-making.

aviation-planes
This should not come as a surprise, since AirAsia had announced well in advance that its base will be Chennai and it would focus on smaller cities.

To counter the new entrant, market leader IndiGo (31% share in March 2014), for instance, is expanding its fleet by adding one A320 every month, while shifting its focus towards South India by doubling weekly flights to Visakhapatnam and expanding flights to Thiruvananthapuram and Kochi, and adding new destinations in smaller towns like Varanasi and Ranchi. This should not come as a surprise, since AirAsia had announced well in advance that its base will be Chennai and it would focus on smaller cities.

Full report here Financial Express

LEAVE A REPLY

Please enter your comment!
Please enter your name here