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Low-cost airlines pull down global fares
NEW DELHI, MAY 1 (AGENCIES)
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Published on 1 May. 2010 11:45 PM IST
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Planning to fly to Kuala Lumpur from Chennai? Book yourself in an Air Asia flight and you have to fork out just Rs 4,100, compared with Rs 8,243 charged by Jet Airways, stated Business Standard. Also, for a trip to Sharjah from Delhi, Air Arabia charges just Rs 7,659, compared with Jet’s Rs 11,217.
With the percentage of seats being offered by low-cost carriers (LCC) in international routes to and from India increasing from around three per cent (in April 2009) of the total seats on offer to 10 per cent currently, there is welcome pressure on fares from the customer’s point of view.
Various Indian LCCs are launching short-haul international routes, to Southeast Asian and West Asian countries. With fares around 50 per cent lower, the LCCs are obviously attracting customers.
International airlines like Air Asia, Air Arabia and Air India Express operate to various destinations in the country and FlyDubai and SpiceJet are to start operations soon. Currently, Air Asia flies to four destinations and has announced plans to fly to five more places in the country.
Air Arabia operates flights from its hub in Sharjah to 13 destinations in the country and the fares offered are around 40% less than the legacy carriers. Analysts also feel these LCCs would stimulate the market and bring more and more people on to airplanes.

 
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