AirAsia India may fuel airfare war

Airasia India on Friday set the stage for a price war in Indian skies with the announcement of its first flight, on the Bangalore-Goa route , starting June 12 at a cut- throat price of Rs 990 including taxes. The offer is likely to force other carriers to review fares on this sector on the same day, which now cost around Rs 5,000 oneway.

The airline has opened bookings on its website.

AirAsia India chief executive Mittu Chandilya told reporters here, "Our collective goal is that every Indian should have an opportunity to fly. We have our plane parked here already. June 12 would be the first flight. It will be an A320 aircraft. The timing of the flight will be around 3pm from Bangalore to Goa, and then back from there ( Goa) around 6' 0 clock." The airline is not looking at operating from Delhi and Mumbai for now. Chnadilya said that the airline would connect 10 cities across the country with 10 aircraft this fiscal. The turnaround time would be anywhere between 25 minutes and 35 minutes.

Asked about other airlines mulling reduction in fares, Chandilya said, "Frankly, my view on that is it will help companies to rationalise costs." To a query on the airline's total load factor, he said, "I would love to have 100- per cent load factor. But 60 per cent will be reasonable."

Courtesy: Mail Today