AirAsia Ups the Ante with 20% Fare Discount
By ENS Economic Bureau | Published: 14th August 2014 06:00 AM |
BANGALORE: Low-cost carrier AirAsia on Wednesday reignited a ‘fare war’ as the Indian arm of the Malaysian carrier announced a 20% discount on fares on all its flights for a limited period.
Though Indian carriers, barring low-cost carrier IndiGo Airlines, have reported mounting losses in recent quarters, they have refrained from offering heavy discounts. Kalanithi Maran promoted SpiceJet has been at the forefront of the ‘fare wars’ despite reporting a Rs 1,003.24 crore net loss for the finanical year 2013-14.
“With our existing everyday low fares, this new campaign is introduced in appreciation of the support and response extended by our passengers. Standing by our promise, this campaign will live up to our visions of making every Indian fly,” Mittu Chandilya, CEO of AirAsia (India) said.
According to aviation analyst firm CAPA (Centre for Aviation), Indian airlines are expcted to post losses of $1.3-1.4 billion in the current fiscal (FY15) even though the number was down from a combined net loss of $1.7 billion recorded in FY14.
AirAsia, which claims that its fares will be 35 per cent cheaper compared to the segment players, has four destinations currently — Chennai, Bangalore, Goa and Kochi.
The company said that the discounted fares would be for a six-day period (August 17) for a travel period up to December 2014, it was reported.