Will new airlines bring back cheaper fares?

Years after Air Deccan and Kingfisher Airlines burst in on the Indian aviation market — one with rock-bottom fares, the other with the most luxurious domestic air offering Indians had seen — AirAsia and Singapore Airlines are likely to shake up the industry next year with two similarly divergent products.

The carriers, both formidable names globally, will count on India, still named by IATA as one of the fastest growing airline markets in the world, to add to their global revenues, help them take on middleeastern rivals and offset demand slumps in other parts of the world.

Their entry also marks the Tata Group’s long-aimed comeback into Indian aviation. JRD Tata founded and ran Air India before it was nationalised in 1953. Since then the group has waited in the sidelines of the airline sector, its efforts thwarted by hasty rule changes and political opposition.

Full report here Economic Times


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