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Mumbai, Feb 8: The India-US sector is likely to witness a price war with Jet Airways and Kingfisher Airlines planning to introduce non-stop daily flights to the US. While the two domestic airlines are studying the market before finalising their pricing for the sector, US carriers Delta Airlines and Continental Airlines have already announced price cuts and other attractive discounts.
Delta recently lowered its Mumbai-New York roundtrip fare from Rs 40,000 to Rs 29,000. The average fare on other carriers on this route is still around Rs 40,000. Continental Airlines, on the other hand, is augmenting its seat capacity and offers an attractive travel package.
Jet is planning to launch its services to the US in July this year. Kingfisher will fly on the sector by January 2008. Air-India is currently the only Indian carrier to operate to the US. “We are in the process of fine-tuning our strategy to compete in this lucrative sector,” says an Air-India official.
The pricing will be done in such a way that it supports the cost and the break-even factor of the airline, the official says. Air-India has been operating on the India-US sector for more then 46 years and charges Rs 45,000 for Mumbai-New York return ticket in the peak season and anything between Rs 29,000 and Rs 32,000 in the lean season.
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