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Low-cost Airlines Lure Indians Travelling Abroad

06 September 2017

According to a report in Times of India, the new low-cost flights will not only be launched just by the Indian low-cost carriers but also foreign carrier companies.

Singapore Airlines' low-cost subsidiary, Scoot, which operates direct flights between India and Europe, would offer lowest fare bucket for a one-way trip.

Scoot's lowest fare for a one-way trip would be between Rs 12,000 and Rs 13,000, including the cost of a 20 kg check-in baggage and a meal.

Scoot started direct flights between Lucknow and Singapore thrice a week from August 2 this year.

At present, the no halt flights are available in India at the cost of Rs 45,000. Mahadevan added that a return trip to Europe would cost around $400.

Industry experts believe this move from Scoot could be a game changer in air travel. "We can see long-haul, low-priced operations gaining ground from next fiscal with Indian LCCs driving growth", said Kapil Kaul of CAPA, suggesting the possibility of creating a new market segment for the same.

The number of Indians trawling the globe is reaching new heights too, as the family income rises. Indians will be able to fly directly to Europe by next year at a rate as cheap as Rs 12000.

Market leader, IndiGo was eyeing the soon to be privatised national carrier, Air India's global operations. Norwegian Air and the International Airlines group have already started the homework to debut in the country. "We can see long-haul, low-priced operations gaining ground from next fiscal with Indian LCCs driving growth", said Kapil Kaul of CAPA adding that it's possible to create a new market segment which could be significantly bigger but ensuring long term viability is critical.

Unlike Scoot, Indian LCCs such as SpiceJet and IndiGo are likely to launch their first European long-haul flight to London-Gatwick (Scoot will steer clear of London so as not to eat into the market of its parent, Singapore Airlines).

Indian carrier SpiceJet, which operates worldwide flights to neighbouring destinations like Dubai, Dubai, Muscat, Kabul etc. had said the return fares to places like London, Paris and Amsterdam in all-economy aircraft could be as low as Rs 25,000.

AI has 17% share on worldwide routes outside India.

Low-cost Airlines Lure Indians Travelling Abroad