Wait till 2005 for 'Rs 500-flight'

Come August 26, India's first no-frills airline, Air Deccan, will unveil the mother of all airfare wars.

Delhi-Mumbai air travellers can now fly by paying just Rs 500 plus Rs 200 as passenger service fee. Bookings, however, have to be done 90 days in advance and can be done only on the Internet at www.airdeccan.net or through the airline's call centre.

But if you want to buy Air Deccan's Rs 700 Delhi-Mumbai ticket, you will have to wait till August next year, as the tickets in this category have been sold out for a year even before the airline started its service in the sector.

The aggressive price is certain to stun all domestic airlines, not to mention the India Railways too. At Rs 700, a Delhi-Mumbai ticket is slightly more than 10 per cent of the existing economy airfare of Rs 6,445 and very close to the Rs 421 second-class Delhi-Mumbai railway ticket.

In the Bangalore-Delhi sector, where the airline is starting its service on August 25, Air Deccan has offered all its tickets for Rs 500. The inaugural flight of Deccan in the sector is also full.

In other sectors, Air Deccan's services are about 50 per cent lower than the normal full-service operator, though in no sector does it offer tickets at less than Rs 990. The world over, low cost carriers operate at about half the costs of a full-service airline.

Air Deccan has obtained parking slots at the Indira Gandhi International Airport and will launch two daily flights connecting Delhi from August 26.

The Bangalore-Delhi flight will depart at 0550 hrs, Delhi-Mumbai at 0855 hrs, Mumbai-Bangalore at 1130 hrs, Bangalore-Mumbai at 1345 hrs, Mumbai-Delhi at 1600 hrs and Delhi-Bangalore at 1830 hrs.

Air Deccan plans to expand its network across the country, giving a run for their money to big operators like Indian Airlines, Jet Airways and Air Sahara on main routes.

A Delhi-Bangalore ticket on these airlines costs over Rs 10,000. On Air Deccan, it will be for around Rs 7,000.

A new concept called dynamic pricing yield management has been put in place. Here, 45 seats on every flight will be available at prices starting at Rs 500 per seat to Rs 3,000.

The next range will be for 90 seats costing between Rs 3,000 and Rs 5,000 and the third range of 45 seats will be available between Rs 5,000 to Rs 7,000 (prices Delhi-Bangalore sector).

The Bangalore-based airline has been operating short-haul flights in South India with quick turnaround times, which ensure higher aircraft utilisation. Money is saved by having more seats in the aircraft, cutting down in-flight services and using only one type of aircraft for the fleet to minimise maintenance costs.

Air Deccan has now signed up for nine Airbus A-320 aircraft. While seven aircraft are on firm order, the airline also has the option of taking another two.

Air Deccan said it is expecting revenues of $120 million in the current fiscal.

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