IndiGo opens new flank in fare war

Low-cost startup airline IndiGo has kicked off a fresh round of fare war by offering services between metros with rates about 60 per cent cheaper than the present low-cost airfares.

For example, a Delhi-Kolkata ticket on a IndiGo flight will be just Rs 1,399 compared with an average low-cost ticket of Rs 3,500.

Similarly, a Delhi-Chennai ticket will be for Rs 1,299 compared with an average low-cost fare of Rs 2,500. The offer, which is introductory now, will change in the future, according to the load factor on sectors as well as demand.

Other airlines said that they are watching the situation and if this pricing impacts them, then will look at revising prices downwards.

Moreover, about a large number of tickets are going to be under the low priced bracket, unlike a typical low cost carrier, where a large number of tickets are on a higher price bracket, with a fewer number of ticket on lower prices.

"Our pricing is not a gimmick. We do not want to offer just one Rs 1 ticket and remaining 180 tickets at Rs 12,000. We want to give real value for money for travellers," said Bruce Ashby, president and CEO of IndiGo.

IndiGo will kick off its service starting August 2, 2006 with 11 sectors, which will be extended to other sectors in the future. The operations will be started on the Delhi and Guwahati route.

IndiGo will be adding one brand new Airbus A320 aircraft each month throughout 2006. It will initially offer non-stop daily service between Delhi and Kolkata, with a same-aircraft continuation to Guwahati, commencing August 20, 2006.

According to Ashby, the airline, which has placed an order for 100 Airbus A 320 aircraft, plans to cut cost in multiple areas.

"We will have a single class of aircraft, which will cut costs considerably. Besides, we will not be offering meals on board, which will also help up save costs further. All this benefits will be passed on to consumers," he said.