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India's first low-cost airline spreads wings
Gulf Daily ^ | Thursday 26 August 2004 | Gulf Daily

Posted on 08/25/2004 7:59:38 PM PDT by CarrotAndStick

India's only budget airline launched its first service to major cities yesterday with its inaugural Airbus flight between this southern technology hub and the capital, New Delhi.

Air Deccan is offering no-frills air travel between India's main cities at prices as low as a third of the cheapest fare charged by the full-service airlines in India.

Air Deccan's Airbus service marked India's entry into the budget airline business, which has been booming in other Asian countries.

At least half a dozen Indian airlines are waiting to see how the carrier performs before they launch rival cut-price services.

Yesterday, some passengers paid as little as 700 rupees ($15) to fly the more than 1,600km(1000 miles).

"Paying 500 rupees ($11) and flying in the air is a great feeling," engineer Hema Bindu, 25, said as she boarded the 180-seat A-320 aircraft. Bindu paid another 200 rupees ($4) in taxes and other charges.

Permission to set up ticketing and check-in counters at the New Delhi airport came only a week ago and parking slots for the aircraft were allotted late, Capt G R Gopinath, the managing director, said.

Air Deccan has been flying small planes on shorter domestic routes for the past three years. The company bought three A-320 aircraft this year and plans to purchase four more to compete with state-run Indian Airlines and the private Jet Airways and Sahara Air on longer routes.

Full-service airlines in India have cut fares in the past year, anticipating competition from budget airlines after the concept caught on in Asia, led by Malaysia's AirAsia, Australia's Virgin Blue, and recent Singapore's Valuair.


TOPICS: Business/Economy; Culture/Society; Foreign Affairs; Government; News/Current Events; Politics/Elections
KEYWORDS: aeroplane; airlines; airsquishy; fly; india; pakistan
Capitalism to the rescue!
1 posted on 08/25/2004 7:59:39 PM PDT by CarrotAndStick
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To: CarrotAndStick

Why does Scott Adams' "Elbonia air" come to mind?


2 posted on 08/25/2004 8:03:23 PM PDT by GSlob
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To: All

http://www.airdeccan.net/airdeccan/home.asp

3 posted on 08/25/2004 8:03:34 PM PDT by CarrotAndStick (The articles posted by me needn't necessarily reflect my opinion.)
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To: CarrotAndStick
"Hello..I am APU...I will be ypour pilot today. Please enjoy your complimentary slurpee and thank very much"

4 posted on 08/25/2004 8:15:35 PM PDT by Khurkris (Proud Scottish/HillBilly - We perfected "The Art of the Grudge")
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To: GSlob

There are quiet a few airlines entering the low cost business in India now-atleast 5-6 by the next 2 years including Air India's 'Express' service & Kingfisher Air(owned by a liquor baron).They are trying to eat into a small chunk of the massive train traveller market.The budget airline in India will take atleast 3 to 5 years to come to full maturity , though,given that many small airports (esp in small towns & remote locations are being built or upgraded to operate commercial passenger traffic & till then the train will hold sway.


5 posted on 08/25/2004 8:16:04 PM PDT by sukhoi-30mki
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To: Khurkris

The pilots for the Airbus A-320 are British and German.


6 posted on 08/25/2004 10:02:46 PM PDT by USMMA_83
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To: USMMA_83
The pilots for the Airbus A-320 are British and German.

I guess my first question would be who is doing the maintenance?

7 posted on 08/25/2004 10:51:38 PM PDT by rogue yam
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To: CarrotAndStick

Air Asia is thus far the only Asian discounter that I see as a serious force in the future market. Air Asia will be the Jet Blue/RyanAir of Asia and you can take that to the bank...


8 posted on 08/25/2004 11:01:35 PM PDT by Clemenza
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To: Clemenza

Look for Air Asia airline to undergo a name change in the future.


9 posted on 08/26/2004 2:19:06 AM PDT by Khurkris (Proud Scottish/HillBilly - We perfected "The Art of the Grudge")
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To: Khurkris; CarrotAndStick

Ah dunno -- the Indians you meet at the 7/11 are some of the hardest working folks I've ever had the pleasure to meet --> I'd have no doubts that these low cost Indian airlines would still be dang good


10 posted on 08/26/2004 11:03:46 PM PDT by Cronos (W2K4)
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To: Clemenza; Khurkris; CarrotAndStick
Air Asia will be the Jet Blue/RyanAir of Asia and you can take that to the bank...

uhh Asia's really a big place you know -- not a teensy little pensinsula like Europe. And going by the reason why Europe is considered a separate continent distinct from Asia (mountains separating it, a distinct culture etc.), India's a continent too.
11 posted on 08/26/2004 11:06:04 PM PDT by Cronos (W2K4)
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To: Cronos

DUH. Being that I follow airlines for personal and professional reasons, my prognostication is based on the fact that Tony Fernandes (head of Air Asia) bought his planes for pennies on the dollar at a bankruptcy sale, has routes that can be easily sustained on a profitable basis and hasn't gone on a spending spree in the initial phase of success, a common mistake made by discount carriers. Many other discounters, whether in India, Thailand or the US of A, haven't learned that lesson yet.


12 posted on 08/26/2004 11:19:44 PM PDT by Clemenza
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To: Cronos
Agree with that. And I also believe that the pilots would be well trained and competent. As to maintenance and ground crews...weeeelllll...that may be the fly in the ointment. But its premature to make that judgment at this point.
13 posted on 08/26/2004 11:33:40 PM PDT by Khurkris (Proud Scottish/HillBilly - We perfected "The Art of the Grudge")
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To: Khurkris

Don't know about now, but Indian Airlines, the state run carrier, had one of the best maintenence and service records in the world. I know that their service has declined, but can't vouch for the maintenence.


14 posted on 08/26/2004 11:38:59 PM PDT by Clemenza
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