Monday, February 23, 2009

Low Cost Airlines Boom in Indian Subcontinent


India's first low-cost Airline, Air Deccan started service on August 25th 2003. The airline's fares for the Delhi-Bangalore route were 30% less the those offered by its rivals such as Indian Airliens, Air Sahara and Jet Airways on the same route. The success of Air Deccan has spurred the entry of more than a dozen low-cost airlines in India. Air Deccan now faces stiff competition from other low-cost Indian carriers such as Jetlite, SpiceJet, GoAir and Paramount Airways. IndiGo Airlines recently placed an order for 100 Airbus A320's worth 6 billion USD during the Paris Air Show, the highest by any India domestic carrier. After a year of operation, in 2006, Kingfisher Airlines changed its business model from low-cost to value airlines.

Some more airlines in Pakistan, Bangladesh and Nepal, will be added soon

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