New Discount Airline Named After a Beer

[Kip Powick]

NEW DELHI, India (AFP) — India's second budget airline takes off Monday as the battle begins for the potentially enormous no-frills sector.

Air Deccan: Carrier announced fares for less than a cent in a counter-offensive to Kingfisher's launch.

Kingfisher Airlines, named after a beer and with models as flight attendants, is the first to challenge low-cost pioneer Air Deccan but five more budget carriers will be introduced over the next year.

The new airline has a marketing strategy unashamedly aimed at attracting a new generation of "high-fliers" by pampering them with top-quality entertainment at budget prices.

"We have extremely attractive and well-trained flight attendants. We have a brand new fleet of aircraft. We have individual entertainment systems where every single seat has video screen," said Kingfisher beer baron Vijay Mallya, the owner of the new airline.

"I believe this is a unique value proposition to the customers. And therefore, I am very sure of its success," he told AFP.

The first flight will be Monday from India's entertainment and financial capital Bombay to IT hub Bangalore.

"If you look at the emerging India, by 2010 there will be a new generation of consumers of about 150 million," said Mallya.

"Who are these people? These are youngsters who are earning money out of information technology, biotechnology, entrepreneurs ... people who have a much greater propensity to spend than when I was young."

With Air Deccan and Kingfisher due to be joined by Spice Air, Go Air, Indigo, Indus one and Air One in coming months, India's skies could soon be getting crowded.

Mallya, however, said there was "room for everybody".

He could be right. Aviation Minister Praful Patel has forecast 20% annual growth in domestic and international air traffic, with passenger numbers due to hit 50 million in five years.

Indian passenger fleets are forecast to almost treble from 150 to 400 in the same period.

"I will have 11 aircraft in the air by this year itself. We will have another six next year. By 2010, we should have 55 planes flying. My vision is to make Kingfisher the largest private sector carrier," said Mallya.

The sector's future looks so bright that even Air Deccan welcomed Kingfisher's launch.

"This is a welcome sign that new airlines are entering. It will energise the market. There is a tremendous need for airline capacity as the requirement is huge," rival carrier Air Deccan managing director G.R. Gopinath told AFP.

Gopinath said if even a fourth of India's billion-plus population are to fly three to four times a year, then a billion airline seats would be needed.

"It would add up to 40,000-50,000 flights a day. But even if India's aviation industry grows by 30% year-on-year, you would only reach 10,000 flights after a decade," he said.

Private airline Jet Airways has dominated the sector since economic liberalisation in the early 1990s and holds 45 of the market. Its rivals are state-run Air-India and private carrier Sahara.

Air Deccan's launch a year-and-a-half ago spooked the mainstream airlines and sparked fare cuts that have attracted new passengers every month.

This week, Air Deccan announced fares for less than a cent in an apparent counter-offensive to Kingfisher's launch.

[Sky High]

Less than a cent??? Why not just pay the people to fly with them?? The Indian version of Jetsgo you think?

[AME]

Less than a cent???The Indian version of Jetsgo you think?

Air Deccan: Carrier announced fares for less than a cent in a counter-offensive to Kingfisher's launch.

It appears to be the incumbent airlines response to a new start up, so the Canadian equivalent would be WestJet, no???

tongue firmly in cheek