The airline industry in India is poised to take off in a big way. The rapid economic growth, a growing middle class, plenty of multinational companies, all combined has driven a huge demand for airlines. Quite understandably a number new airlines have enterted the fray: Jet,Sahara, Deccan, Kingfisher, Magic, Spicejet to name a few. Jet Airways, the leading and most established among these, is eyeing the international market. It has just started flights to Singapore and Middle East. The market in India is clearly huge. Airlines can be hugely profitable provided they can find the right routes and maintain affordable price levels.
Deccan airlines uses RK Laxman’s “common man” as its logo/symbol signifying that its aspiring to reach the masses. They have launched a price war by announcing a limited number of seats at Re. 1 per ticket (requires 90 days advanced purchase plus some other requirements). Other airlines are threatening to follow suit. I hope these airlines survive and don’t compromise on quality, safety and other bare essentials associated with air travel.
A friend of mine, aptly described his flying experience in one of these low cost airlines, “It was like a flying auto!!”.