Indian carrier IndiGo poised to enter Nepali skies

Sat, Jun 18, 2011 12:00 AM on Others, Others,
KATHMANDU, JUN 18 -
Indian low-cost carrier IndiGo has applied to the Ministry of Tourism and Civil Aviation (MoTCA) to operate flights on the Delhi-Kathmandu sector.

MoTCA spokesperson Laxman Prasad Bhattarai said that it would take some time to process the application. IndiGo will be eligible to operate international flights after it completes five years of domestic operation in August.

With the entry of IndiGo, the number of international airlines serving Nepal will reach 28. The carrier’s appearance is likely to set off stiff competition among India-based airlines flying to Nepal. IndiGo will operate at least one flight daily in the initial phase, said Bhola Bikram Thapa, managing director of President Travels and Tours which has been appointed IndiGo’s general sales agent (GSA) in Nepal.

IndiGo began operations in August 2006. It is the second largest airline in India with a market share of 19.7 percent. The carrier has a fleet of 39 Airbus aircraft and operates 259 flights daily to 26 destinations across India. IndiGo has announced it will operate its maiden international flight on Sept 1, connecting New Delhi with Dubai. The carrier will connect New Delhi with Bangkok and Singapore from Sept 8 and Sept 15 respectively.

Thapa said that IndiGo’s coming would make the Kathmandu-Delhi sector more competitive. “More connectivity means more advantages to passengers.” Although IndiGo has not set

the airfare, Thapa said that the minimum airfare would be around Rs 5,000 one-way.

As the price of a ticket in any country is determined by market forces and Nepal being a price conscious market, there will be a stiff competition among Indian carriers, Thapa added.

Currently, five Indian carriers, the flag carrier Air India, Kingfisher Airlines, Jet Airways, Jet Lite and Spice Jet, operate flights to Nepal. Except for Air India, all the Indian carriers reported a healthy growth in passenger movement last year. According to Tribhuvan International Airport statistics, the entry of India-based airlines in Nepal has led to Air India losing passengers.

It posted a drop of 12.38 percent while Jet Airways and Jet Lite posted growths of 52 percent and 4.46 percent respectively.

International airlines operating in Nepal saw a 20.19 percent rise in passenger movement in 2010 compared to 2009. The number of passengers reached 2,436,558 in 2010 against 2,027,147 in 2009.

Source: Kantipur