How will international low-cost carriers impact Air India, particularly on Gulf and South-east Asian routes?
There is nothing to get unduly worried about the entry of more international budget carriers or other full-service carriers. Overall, the Indian market is growing at a very fast rate, creating a new pool of passengers. Then, there have been cases of international low-cost carriers that have discontinued operations to India. What is Air India’s strategy for taking on these budget carriers? Air India is not going be adversely affected as we have Air India Express with its entirely new fleet to operate in the low-fare space. Take the case of international budget carrier Air Arabia, which has had no affect on Air India Express — if anything, it has proved even more successful. Do you foresee a fare war? Not necessarily. There will be some promotional fares or schemes initially, as is the case with any airline starting a new service. But unhealthy competition will deteriorate the financial strength of all airlines. No airline can sell tickets below its cost of operations. No such fares are
Related Questions
- What is the anticipated impact of this work on international students, particularly around optional practical training (OPT)?
- What impact does the current Russia-Ukraine gas crisis have on international energy prices, particularly for oil?
- How will international low-cost carriers impact Air India, particularly on Gulf and South-east Asian routes?
