AirAsia India keeps its promise of low fares, set to trigger price war

AirAsia India kept its promise of surprising air travellers by announcing its inaugural flight between Bangalore and Goa on June 12 at an all inclusive fare of Rs 990.

The bookings will open at 9.30 pm on its website. The first flight, a A320, will leave Bangalore on June 12 at 3 pm.

The announcement was made by Mittu Chandilya, CEO, AirAsia India. He reiterated AirAsia's commitment to give every Indian an opportunity to fly.

The company has already drawn up the route schedule for the next 12 months and it will be rolled out periodically depending on arrival of aircrafts, seasons and traffic.

The second route will be Chennai-Bangalore-Chennai and will become operational in two weeks. The plan is to cover 10 cities over the next one year by when 10 aircrafts will be in operation.

AirAsia India has one aircraft in its possession at present.

Chandilya expects to see break even operations in about four months depending on how quickly the company increases aircraft utilisation.

Asked if the pricing was sustainable, Chandilya maintained that it was. He said the company is focussing on various ways to reduce costs. High airport costs, for instance, has meant that the company will not start Mumbai or Delhi operations any time soon.

Asked what the focus of the new government should be in terms of infrastructure, Chandilya said India needed many more low cost airports.

"There is no need for expensive airports. All we need is facilities that enable air passengers to travel safely. We don't need to build Taj Mahals," he said.

He said he was not concerned about reports that the new government would review all decisions of the UPA government. AirAsia, he said, has operated within the rules.