Despite the downturn in the global aviation market, international carriers such as Malaysia-based AirAsia and Dubai-based FlyDubai are looking at India to expand their networks.
These carriers are going the whole hog to expand by attracting Indian fliers to fly low cost. Industry experts say India is a huge market with a slice of decent share for each player and hence new players are optimistic about the opportunities they can tap in India.
AirAsia, which has been flying to Trichi since last year, is going to launch direct flights to Kolkata, Kochi and Thiruvananthapuram from Kuala Lumpur in November. The carrier has also announced all-inclusive fares beginning at Rs 1,499. Similarly, FlyDubai plans to expand at a faster pace in India until 2011. The carrier has already sought permission to operate to destinations such as Chandigarh, Coimbatore and Lucknow.
Not lagging behind is a veteran like Hong Kong-based Cathay Pacific which has been operating in India for the past 55 years and has announced attractive holiday packages starting at Rs 43,241 to woo consumers here.
Samara Capital principal consultant Raj Halve said, “India has a growth story with consumers ready to spend on their travel. Being a developing country, airline operators find a huge potential to enhance revenues. Second, there is a huge chunk of Indian travelers visiting either South East Asia or the Gulf region frequently. By flying a huge number of tourists into their country, it has a multiplying effect on the GDP of that country since tourist spendings are high when they visit those countries.”
These carriers are aiming to optimise revenues from India operations by securing high load factors. Analysts say international carriers believe that the long-term prospects of the Indian economy are very strong and this will drive demand for air travel in future.
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