Airasia entry to trigger price war

The LCC segment in India has been full of excitement post the announcement of AirAsia India. Everyone is talking about the magic formula that AirAsia might introduce in the Indian market that others missed. The more seasoned section of aviation experts wonder that if ATF accounts for a substantial part of the operation and most of the other charges remain same, what variables will work wonders for AirAsia?

Tony Fernandes, CEO of AirAsia, who was recently in Mumbai and Delhi, had subtly highlighted that in the Indian aviation, silly capital has moved out now, and only the serious players are left in the aviation business.

No doubt, all players in the aviation industry are working out various modalities to gain from the no frill approach, enticing the consumers to choose for themselves the services they want to pay for. The good news for the travel fraternity is on two ends: Firstly, due to the onset of intense competition, air travel costs are likely to stay at the most competitive level, which will encourage more domestic and international tourists to move freely in India.

Secondly, and more importantly, Tony Fernandes shared his plan to make all possible modalities to work with travel agents, who he said, are an important distribution channel in India. We hope it spreads like a viral and all other players work towards restarting an era that rewarded travel agents generously for acting as extended hands of airlines.

Finally, it’s impossible to put aside the mindless act of terrorism that targetted the Mahabodhi Temple, a world heritage site in Bihar's Bodh Gaya. In our opinion, it’s an attack against the world, where devotees and visitors come from all over in reverence to Gautam Buddha. The most appropriate response to any such barbaric act would be a growth in tourism that should de facto lead to creation of necessary safeguards, security arrangements, weaken terrorism and make humanity stronger.