Airasia en­try to trig­ger price war

TravTalk - India - - News -

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.

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