Tuesday, May 23, 2006

Another air fare war looms over Indian skies

Mumbai, New Delhi: The imminent entry of three Delhi-based airlines—low cost carrier Indigo Airlines, budget carrier Jagson Airlines and full service carrier Indus Air—is set to trigger another fare war in the domestic aviation sector.
While Indus Air will take off next month, Indigo and Jagson are beginning operations in July. Since the value proposition will be more or less in line with that offered by existing players, the fight for marketshare is likely to be fought on fares, according to industry players.
Indigo is planning to offer fares in line with low cost carriers such as Air Deccan and Go Air. Jagson is planning economical fares in two classes. Jagson Airlines chief executive officer Uttam Kumar Bose said.Indus Air is targetting North India routes.
Indus Air will start operations with two CRJ-200 aircraft with a seat configuration of 50 each. Jagson will start with two Airbus 320 aircraft and Indigo will start with one Airbus 320 aircraft. Each Airbus 320 aircraft has a seat configuration of about 150.
23/05/06 Neelasri Barman & Emanuel L Joute/Financial Express
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