Jet Airways, IndiGo be warned: AirAsia is coming to Mumbai

AirAsia India will soon be starting flights to Mumbai, a city it had initially not considered due to cost considerations. Tony Fernandes today tweeted about impending operations from Mumbai. This will almost certainly give other airlines some anxious moments since AirAsia’s low fares would push them to compete with low fares of their own for flights from India’s business capital. Fernandes made no mention of any plans to start flights to Delhi though.

India’s airlines have been on a discount spree this year as they combat low aircraft loads with unbelievable ticket prices, never mind their bottom lines. Ever since AirAsia debuted in June, legacy airlines as well as LCCs have been matching AirAsia’s rock-bottom fares. They are unlikely to give up when the budget airline starts flights from Mumbai. In the process, airline balance sheets continue to bleed.

AirAsia operates in the Bangalore to Kochi, Chennai, Chandigarh, Jaipur and Goa sectors as of now. It is a three-way venture between Malaysia-based AirAsia Bhd, Tata Sons and Delhi-based investment firm Telestra Tradeplace.

Earlier this week, legacy carrier Jet Airways launched a promotional offer on the routes operated by AirAsia India by offering fares as low as Rs 908 (all-inclusive) for economy class tickets. This Jet Airways offer can be availed by booking before 5 October and is valid on travel after 15 January, 2015.

As part of the offer, Jet Airways is offering Kochi-Bangalore tickets at Rs 908, Bangalore-Kochi at Rs 1,162 and Bangalore-Chennai at Rs 1,162. AirAsia has earlier offered fares as low as Rs 690 for travel between 15 January, 2015 and 30 June, 2015.

Earlier this month, AirAsia India added Jaipur and Chandigarh to its network as part of its first foray into north India.